14 DAY TRIAL // Vista Equity Partners, who acquired Websense in 2013, and Raytheon, designer of the Patriot missile, have entered into an final agreement to combine their knowledge into a new company that will be able to offer defense-grade solutions to global cybersecurity markets.
The name of the new entity has yet to be revealed, but the joint-venture will mix in a $1.57 / €1.46 billion net cash investment from Raytheon for 80.3% of the firm, while the balance will be Vista’s property.
Websense CEO will take the same spot in the new company
The joint venture will benefit from the cybersecurity technology from Raytheon and Websense’s TRITON platform, which is designed for web filtering, email security and data loss prevention activities.
John McCormack, CEO of Websense, will take the same position at the newly formed company. The board of directors will be formed from representatives of both Vista Equity Partners and Raytheon.
“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,” said David Wajsgras, president of Raytheon Intelligence, Information and Services business.
“For nearly two decades, Raytheon has provided cybersecurity technology and support to some of the world’s largest organizations, spanning government, retail and financial services,” he added.
Websense has a customer base of more than 21,000 across the globe and enjoys a distribution channel of over 2,200 partners. Through this partnership, these figures are obviously expected to increase.
The deal includes an intercompany loan
According to the details of the transaction, Raytheon will pay $1.9 / €1.77 billion (net of cash acquired) for getting Websense in its portfolio, with $600 / €557 million being under the form of intercompany loan.
Intellectual property, estimated at $400 / €372 million and the assets of Raytheon Cyber Products are also thrown in the deal, which is expected to complete in the second quarter of 2015.