Google’s $5.4bn Acquisition of Mandiant

By Haozhe (James) Huang , Friedrich von Storch and Yujia Bao (IE Business School), Mikail Boudouda and Florent Onguen (Grenoble École de Management)

 

Overview of the deal


Acquirer: Google LLC

Target: Mandiant, Inc.

Implied Equity Value: $23 per share

Total Transaction Size: $5.4 billion

Announcement date: 8th March 2022

Target advisor: Goldman Sachs


The American tech giant Google has signed a $5.4 bn deal to acquire US-based cybersecurity company Mandiant. This offer agreement assumes a $23.00 per share, all in cash, representing a 57% premium to the undisturbed 10-day trailing volume-weighted average price as of February 7, 2022.


Mandiant will join Google cloud’s department to strengthen the protection of Google’s cloud customers against online threats. In direct competition with Microsoft, Google has succeeded in securing this strategic deal, which will be its second-largest acquisition - if approved by the regulators - since Motorola in 2011 for $12.5 bn.


“Organisations around the world are facing unprecedented cybersecurity challenges as the sophistication and severity of attacks that were previously used to target major governments are now being used to target companies in every industry,” -Thomas Kurian, CEO, Google Cloud.

Company Details (Google)


Google provides a variety of Internet-related services and products. Member of the GAFAM, Google’s website is the most visited worldwide. Since 1998, Google has constantly increased its variety of products and services, from search engines to cloud computing.


Founded in 1998, headquartered in Mountain View, California USA

CEO: Sundar Pichai

Number of employees: 156 500

Market Cap: $1,671 Trillion (as of 14/03/2022)

EV: $1,609 Trillion

LTM Revenue: $257,64 Billion

LTM EBITDA: $91,14 Billion

LTM EV/Revenue: x6.2

LTM EV/EBITDA: x17.0


Company Details (Mandiant)


Mandiant is a company that specialises in cyber defence solutions. Founded by a former US Air Force soldier, the firm uses a SaaS model through the Mandiant Advantage platform. Mandiant’s offer includes several products, from alert investigation to comprehensive protection.


Founded in 2004, headquartered in Reston, Virginia USA

CEO: Kevin R. Mandia

Number of employees: 2 335

Market Cap: $5,05 Billion (as of 14/03/2022)

EV: $4,35 Billion

LTM Revenue: $483,5 Million

LTM EBITDA: ($238,5 Million)

LTM EV/Revenue: x9.0

LTM EV/EBITDA: N/M


Projections and Assumptions