Raytheon, an arms manufacturer, will buy Austin-based cyber security company Websense from private equity firm Vista Equity Partners for $1.9 billion, including debt.
Raytheon, a popular military defense system maker, will invest around 1.6 billion to gain a majority stake of the company. It has been found that companies are investing in cyber security, especially after the security breaches in Sony, Sears and Target.
It has been understood that Vista Partners will also invest about $335 million to acquire a minority stake in the company.The new company, including Raytheon’s cyber products operations and Vista’s Websense operations will provide defense-grade cyber security solutions for commercial companies, according to Kxan.
Raytheon Chairman and CEO Thomas A. Kennedy has stated that sophisticated threats created by affluently-funded, nation-state adversaries and criminal groups are driving the growth of cybersecurity industry.
Websense’s TRITON, a cybersecurity product, is used by more than 11,000 enterprises, according to the company’s website.
Analysts believe that the demand for cybersecurity products will increase with the growing hacking incidents occurring in both private and government organizations. The deal is also expected to heighten the interest of investors in cybersecurity domain.
Minority stakeholder Vista Partners will keep 19.7 percent ownership in the new company. The final deal will take place in the second quarter of 2015.
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