Google has entered into a deal to acquire cybersecurity firm Mandiant for $5.4 billion in cash to support its booming cloud business.
Google had offered $23 per share which, according to the cybersecurity firm, was at a 57 percent premium to Mandiant’s stock price.
“The Mandiant acquisition underscores Google Cloud’s commitment to advancing its security offerings to better protect and advise customers across their on-premise and cloud environments,” Mandiant said in a statement.
A closed deal could bolster Google’s cloud computing business, which generates more than $19 billion annually but has been losing billions of dollars a year, and would also help it compete with rival Microsoft.
Microsoft is also interested in buying Mandiant, according to tech blog The Information.
Google said in its own statement that the acquisition of Mandiant will “complement Google Cloud’s existing strengths in security.”
Mandiant specializes in cybersecurity advisory and cyber-incident response.
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