Google recently announced its plan to acquire cybersecurity company Mandiant for $5.4 billion, in an effort to bolster its services and entice new customers into the fold.
However, as with any huge acquisition, regulators are looking closely at the deal to make sure that it passes muster – especially in terms of harming competition.
In a filing with the US Securities and Exchange Commission (SEC), Mandiant executives disclosed that their company and Google had received enquiries from the US Department of Justice (DOJ).
“On March 21, 2022, Mandiant and Google filed the Notification and Report Forms required under the HSR Act with the Department of Justice (the “DOJ”) and the Federal Trade Commission,” the filing explains.
“On April 20, 2022, Mandiant and Google each received a request for additional information…from the DOJ in connection with the DOJ’s review of the Merger. The issuance of the Second Request extends the waiting period under the HSR Act until 30 days after both Mandiant and Google have substantially complied with the Second Request, unless the waiting period is terminated earlier by the DOJ or extended by agreement of Mandiant and Google.”
The merger is still expected to complete within 2022, but this could present a snag for the search giant and its plans to cement its place in the cybersecurity space with netowork mapping, ransomware protection and risk management services from Mandiant.
Both parties expect to reply promptly to the DOJ’s requests, which have been described as routine.
A huge move in the security space
Google buying Mandiant is a really big deal and it’s no surprise that various parties are opposed to the merger. Recently, a shareholder filed a lawsuit claiming that Mandiant made “materially incomplete and misleading” in shareholder letters.
Whether these moves go anywhere remains to be seen – and presumably Google is fairly confident it can get the deal over the line – but the deal would bring one of the largest cybersecurity firms under direct control of one of the world’s largest companies.
Mandiant has made a name for itself by offering tools to detect and counteract malware and other forms of cyberattack, as well as offering public-facing research into a variety of online misdeeds.
Mandiant also recently partnered with CrowdStrike, its key rival, which is perhaps a sign of goodwill from the company ahead of scrutiny from regulators.
Via The Register
