Raytheon to buy cybersecurity firm Websense in $1.9 billion deal

By on April 20, 2015

(Reuters) – U.S. hands maker Raytheon Co (RTN.N) stated it will buy cybersecurity supplier Websense Inc from private Fairness firm Vista Fairness Partners LLC for $ 1.9 billion, including debt.

Raytheon mentioned it might mix its cybersecurity unit, valued at $ Four Hundred million, with Websense. Vista Fairness will then make investments about $ 335 million for a 19.7 percent Fairness stake in the new company, Raytheon said on Monday.

“This deal speaks to the growing significance of cyber security to protect businesses, in addition to executive belongings, from malicious process and state assaults,” FBR Capital Markets analyst Daniel Ives wrote in a be aware.

Demand for cybersecurity Expertise has elevated after a spate of excessive-profile breaches at firms comparable to Sony Corp (6758.T) and Goal Corp (TGT.N).

Austin, Texas-based totally Websense helps to offer protection to firms from such assaults and knowledge theft. Greater Than 11,000 organizations depend on its TRITON safety offerings, in keeping with its web page. Vista took Websense private two years in the past for $ 990 million.

The Brand New company, so they can be headed via Websense CEO John McCormack, will be a separately pronounced business unit, Raytheon said.

A board of directors might be fashioned for The New firm and can include representatives of each Raytheon and Vista Fairness Partners, the company said.

RBC Capital Markets LLC used to be the lead monetary adviser to Raytheon. Morgan Lewis & Bockius LLP, Steptoe & Johnson LLP and Wilson Sonsini Goodrich & Rosati have been its prison advisers.

Citi was the monetary adviser to Websense, whereas Kirkland & Ellis LLP its felony adviser.

(Reporting by using Sagarika Jaisinghani and Devika Krishna Kumar in Bengaluru; Modifying via Sriraj Kalluvila)

Reuters: Technology Information

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