Mandiant shares up 20% on a possible deal with Google

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Mandiant Inc (NASDAQ: MNDT) shares jumped 20% on Monday after the Information cited anonymous source to report that Alphabet Inc’s (NASDAQ: GOOGL) Google was interested in buying the cybersecurity company for $4.50 billion.

What’s in it for Google?

According to Josh Sisco, the reporter who broke the news, the acquisition will establish Google as a stronger competitor for Microsoft in cloud security. On CNBC’s “Closing Bell”, he said:

It’s a consultancy that has focused on countering cybersecurity threats and for a company like Google, it would really bolster its cloud business which is trailing behind Amazon and Microsoft.

Cybersecurity is keeping in the green amidst the broader risk-off related to the ongoing Ukraine war. The First Trust NASDAQ Cybersecurity ETF (CIBR) has climbed about 8.0% over the past two weeks. Last month, Alphabet reported better-than-expected results for its fiscal Q4.

Regulatory scrutiny expected

At $4.50 billion, the acquisition, if executed, would be Google’s second-largest on record. The agreement could face serious regulatory scrutiny, added Sisco.

You can’t think about Google and the large acquisition without talking about antitrust. The climate has turned against some of the largest tech companies. So, I do think the FTC or DOJ would want to run it down and make extra clear that they’re comfortable before they let it go.

In February, Microsoft was also reported to be interested in buying Mandiant Inc.

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