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A step towards strengthening cyber security net: Google acquires Mandiant for US$5.4 Bn

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Skyquest
A step towards strengthening cyber security net: Google acquires Mandiant for US$5.4 Bn

Google announced that it has inked a deal with Mandiant, a cyber security firm, for nearly US$5.4 billion. This deal would be Google’s second-largest acquisition subject to regulatory approvals. Google and Mandiant came to an agreement where Google will spend US$5.4 billion to acquire Mandiant. This amounts to US$23.00 a share or a 57% premium. This deal is as part of an effort to better protect its cloud customers.


Mandiant was the FireEye umbrella before that brand was sold. FireEye was credited with helping Microsoft discover the SolarWinds hack that attacked government systems in 2019 and 2020.


This acquisition is a strategy to differentiate itself as a secure cloud services provider with growing cybersecurity threats to corporations and cyber-attacks increasing by the day and cyber warfare underway from Russia/state-sponsored cyber-terrorism organizations, Google's Move will help create a competitive advantage against its larger competitors Microsoft and Amazon.


As of April 2021, Skyquest analyzed that the worldwide cloud market grew 35% this quarter to $41.8 billion. AWS has 32% of the market, followed by Azure at 18%, Google at 8%, IBM Cloud and Alibaba Cloud close to 5% among other players’ holding a 32% share in the market.

This would also make the cybersecurity space the next hot thing for other giants too. Some other players like Varonis, Tenable, CyberArk, Qualys, Rapid7, SailPoint and Ping stand out as potential M&A candidates in cyber security. There are a handful of vendors focus on protecting next-generation cloud workloads from cyber-attacks.


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