Raytheon Company (NYSE:RTN), a leading arms manufacturer in the U.S., has announced plans to acquire Websense Inc (NASDAQ:WBSN), a leading provider of cybersecurity solutions, from Vista Equity Partners LLC. The deal is valued at $1.9 billion. Vista Equity has acquired Websense Private in a deal valued at $990 million two years ago.
Following the acquisition, Raytheon decided to merge Websense Inc with its $400 million worth Cybersecurity unit.
According to Raytheon, John McCormack, Chief Executive Officer of Websense, will head the newly formed company.
According to Raytheon, Vista Equity will acquire 19.7% equity for $335 million in the new business.
According to Daniel Ives, an analyst at FBR Capital Markets, the deal indicates the significance of cybersecurity solutions to safeguard government assets and enterprises as well from the state attacks and malicious activity.
The demand for cybersecurity solutions is robust following the recent high-profile attacks on firms like Target Corp (NYSE:TGT), Sony Corp (ADR) (NYSE:SNE), Home Depot Inc (NYSE:HD) and Staples, Inc. (NASDAQ:SPLS).
According to Thomas Kennedy, Chief Executive Officer at Raytheon, the number of threats from ultra sophisticated attackers is growing at fast pace. The merger of two businesses will put the company in the top slot to thwart such attacks and safeguard vital firms.
Websense, which is located in Austin, Texas, has unveiled cybersecurity suites to safeguard firms from such malicious attacks and data thefts.
According to the website of Websense, its TRITON security solutions protect over 11,000 enterprises.
Raytheon has appointed RBC Capital Markets LLC as the lead financial adviser for the deal. Its legal advisers include Steptoe & Johnson LLP, Morgan Lewis & Bockius LLP and Wilson Sonsini Goodrich & Rosati.
The legal adviser and financial adviser of Websense were Kirkland & Ellis LLP and Citi.
Initially website filtering company, Websense Private has diversified into internet security solutions.
The company was initially engaged in blocking porn content. The company was later transformed to offer a full suite of cybersecurity services.