Mandiant, a security intelligence firm, is being purchased by Google for $5.4 billion

• ByStartupStory     |    March 9, 2022

At a time when many businesses are concerned about cybersecurity, Google announced the acquisition of security intelligence company Mandiant for $5.4 billion, providing them access to security data gathering tools as well as a team of hundreds of security consultants. Upon completion, the company will become a part of Google Cloud.

Companies are facing unprecedented security dangers, especially while the crisis in Ukraine rages, according to Google Cloud CEO Thomas Kurian, and Mandiant provides the company with a platform of security services to add to the Google Cloud Platform.

Mandiant will be paid $23 per share, which is a 57 per cent premium over the 10-day weighted stock price average. The stock has gained over 18 per cent in the previous year and has had a nice surge in the last few days as whispers of a possible deal began to circulate.

The transaction, according to Patrick Moorhead, founder and chief analyst at Moor Insights & Strategy, should improve and expand Google’s already robust security posture. Inside of its own cloud, the cloud has always had a high reputation for security solutions. The acquisition of Mandiant opens the door to any cloud or on-premise option.

Following Google’s recent acquisition of Siemplify for security orchestration, automation, and response (SOAR), the Mandiant acquisition is another indicator that the company’s security branch — which is part of the Google Cloud business unit — is serious about creating revenue.

The acquisition could strengthen the company’s security case, particularly for potential clients concerned about cloud workload security. Google wins by removing security as a barrier to GCP adoption by enhancing its security skills and brand awareness as a security vendor.

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