While shares of Mandiant (NASDAQ:MNDT) are in the red today, Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google recently announced that it would be acquiring the cybersecurity firm. The two companies have already signed a definitive agreement for an acquisition worth $23 per share of MNDT stock. At that price, the transaction will value Mandiant at $5.4 billion. The acquisition is expected to close later this year, with Mandiant joining Google’s Cloud division.
However, the transaction must be approved by federal regulators before it can occur. If approved, the acquisition will be Google’s second-largest acquisition ever, behind the company’s $12.5 billion Motorola Mobility deal. In addition, the timeline for federal approval may take quite some time. For example, Google’s $2.1 billion acquisition of Fitbit took more than a year to close.
However, Mandiant executives seem optimistic about the deal. “Together, we will deliver our expertise and intelligence at scale via the Mandiant Advantage SaaS platform, as part of the Google Cloud security portfolio,” said Mandiant CEO Kevin Mandia. “These efforts will help organizations to effectively, efficiently and continuously manage and configure their complex mix of security products.”
So, what else should investors know about the Mandiant acquisition? Let’s jump right in.
MNDT Stock: What to Know About the Google Acquisition
- Google Cloud CEO Thomas Kurian plans on utilizing Mandiant to “further enhance our security operations suite and advisory services, and help customers address their most important security challenges.”
- Mandiant was founded in 2004 and bought by FireEye in 2013. FireEye changed its name to Mandiant last year.
- Accordingly, the ticker symbol changed from FEYE to MNDT.
- The company gained notoriety in 2019 after it assisted in discovering the Solar Winds hack.
- In the past, Mandiant has assisted U.S. intelligence agencies by publishing cybersecurity reports and identifying nation-state sponsors of intrusions.
- Mandiant CEO Kevin Mandia explains that the Google acquisition will help cybersecurity automation and improve cloud security.
- During Q4, Mandiant reported revenue of $133 million, up 21% year-over-year.
- For the full-year of 2022, the company expects revenue between $555 million and $565 million.
- Wedbush analyst Dan Ives believes the acquisition will lead to a “massive phase of consolidation potentially ahead for the cloud space.”
- Ives adds that other cloud companies, like CyberArk (NASDAQ:CYBR) and Qualys (NASDAQ:QLYS), are potential acquisition targets.
- Shares of MNDT stock have appreciated more than 25% since the start of the year.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.