Google (GOOGL.O) is paying $5.4 billion to acquire cybersecurity firm Mandiant Inc (MNDT.O), bolstering its position as competitors Microsoft and Amazon strive to strengthen up security for their fast-growing cloud operations.
The transaction will strengthen Google’s cloud computing business, which generates more than $19 billion in annual revenue, as well as its security operations and advisory services, according to the company.
According to published sources, Microsoft Corp (MSFT.O) is also considering a takeover of Mandiant. The software behemoth previously estimated that it will spend $20 billion on cybersecurity over the next five years.
Google’s $23 per share offer marks a 53 percent premium over Mandiant’s stock price levels prior to reports that Microsoft was interested in a purchase.
In premarket trade on Tuesday, Mandiant shares plummeted 2%, while Alphabet shares increased 0.2 percent to $2532.20.
