Raytheon is to acquire 80 per cent of Websense from its parent Vista Equity Partners to form a new company combining Websense TRITON with Raytheon’s advanced cyber security technologies.
With an initial investment of $1.57 billion in net cash for majority ownership of the new company, which Vista will also invest into too, the new company will provide broad set of defense-grade solutions.
Following successful completion of the transaction, the new company will be a separately reported Raytheon business segment. The CEO of the new company will be Websense CEO John R. McCormack, while a board of directors will be established for the new company and will include representatives of both Raytheon and Vista Equity Partners.
Raytheon will contribute $1.9 billion (net of cash acquired) to acquire Websense, of which $600 million will be in the form of an intercompany loan to the joint venture. Raytheon will also contribute the assets of Raytheon Cyber Products and related intellectual property, which is valued at $400 million. It is anticipated that the transaction will close in the second quarter of 2015, subject to regulatory approvals and other closing conditions.
David C. Wajsgras, President of Raytheon Intelligence, Information and Services business, said: “Commercial companies are evolving their infrastructure with cloud computing, mobility and the Internet of Things to stay competitive and, as a result, they have become more vulnerable than ever.
“For nearly two decades, Raytheon has provided cyber security technology and support to some of the world’s largest organisations, spanning Government, retail and financial services. I am pleased to welcome John McCormack and the Websense team to Raytheon. Our joint venture will deliver the power of TRITON, a market leading integrated security platform, with the strength of SureView software products to protect commercial business across the globe.”
McCormack said: “As a cyber security market leader, Websense provides a proven technology platform, a team with depth and breadth of industry experience, over 21,000 customers, and a delivery channel of over 2,200 partners. The opportunity to provide our growing customer base with Raytheon’s patented technology positions us to serve customers as they manage the emerging and long-term cyber threat environment.”
Vista made its acquisition of Websense in 2013. Raytheon also bought privately held Blackbird Technologies, which provides cyber security, surveillance and secure communications to spy agencies and special operations units, for $420 million in November last year.
This story replaces an original report where the deal was rumoured to be taking place.
