Google’s $5.4B Mandiant Deal Is Latest Proof Of Security Sector Superstrength

The past few quarters have offered pretty much nonstop affirmation for cybersecurity industry bulls. Valuations are up, huge rounds are multiplying, and big acquisitions are piling up. 

Today, we saw the latest mega-sized acquisition in the space as Google announced it will pay $5.4 billion to buy Mandiant, a publicly traded provider of threat intelligence. The offer price represents a 57 percent premium to the average share price over roughly the prior two weeks. 

Founded in 2004, Reston, Virginia-based Mandiant operates a SaaS platform that combines threat intelligence and defense tools. Post-acquisition, the company plans to integrate its offerings into the Google Cloud security portfolio.

The planned purchase comes as investment into cybersecurity continues to scale new heights. So far this year, companies in the security space have raised more than $5 billion in seed through growth-stage funding, per Crunchbase data. Some of the largest funding recipients include:

• Securonix, an Addison, Texas-based security analytics platform provider, raised $1 billion in growth funding in February.
• 1Password, a Toronto-based provider of password management tools, raised $620 million in a January Series C round.
• BlueVoyant, a New York-based provider of a cyber defense platform for enterprises, raised a $250 million Series D in February. 

The strong start in 2022 indicates that cybersecurity investment is not slowing down from last year’s levels. And that’s saying something, given that 2021 was a record-setting year, with an unprecedented $21.8 billion in venture capital poured into cybersecurity companies globally.

Illustration: Dom Guzman

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