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HomeGoogleGoogle-Mandiant Deal Draws Closer After Justice Department's Antitrust Investigation Concludes

Google-Mandiant Deal Draws Closer After Justice Department’s Antitrust Investigation Concludes

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Jay Fitzgerald

Mandiant said in a regulatory filing that regulators granted an “early termination” of the waiting period for the transaction to proceed. The transaction is expected to close by the end of 2022.

The historic Google-Mandiant merger is now one step closer to reality.

In a new filing with the U.S. Securities and Exchange Commission, Mandiant, which Google is seeking to acquire for $5.4 billion to bolster its cloud security posture, the Justice Department has effectively terminated its antitrust investigation with no objection to letting the deal proceed.

“On July 15, 2022, the Department of Justice granted early termination of the waiting period under the HSR Act with respect to the merger,” Mandiant’s filing reads, referring to the HSR Act. the Hart-Scott-Rodino Antitrust Improvements.

“The early termination of the waiting period under the TGV Act satisfies one of the conditions for the closing of the merger. »

Mandiant’s filing concluded: “Mandiant and Google continue to expect the merger to close by the end of 2022.”

Google and Mandiant, which is considered an incident and response superstar in the cybersecurity world, have consistently expressed confidence that their deal will receive all necessary regulatory approvals, with the transaction closing later this year.

But some observers grew a little alarmed in May when authorities demanded more information from the companies, indicating that regulators were conducting more than a cursory antitrust review of the proposed transaction, as reported at the time by The Register.

But the doj’s action appears to put an end to antitrust concerns — and a potential merger blowout.

Representatives for Mandiant and Google could not be reached for comment.

According to the National Law Review, the Federal Trade Commission and the doj are authorized under the TGV Act to terminate a mandatory waiting period early “after determining that no additional information is is necessary and the transaction does not raise significant competition concerns.

In this case, that means the big Google-Mandiant cybersecurity deal can go ahead as planned.

The announcement in March that Google planned to buy Mandiant was the talk of the tech world last winter, in part because many thought Microsoft might be the first to buy Mandiant.

Microsoft considered a takeover of Mandiant, but pulled out of negotiations after agreeing a merger with Mandiant wouldn’t be a good fit. according to published reports.

Google eventually agreed to pay $23 per share for Mandiant, a 57% premium to Mandiant’s weighted stock price over several days before takeover speculation took hold last winter.

Google has made it clear that it wants Mandiant to strengthen its cloud security, among other things.

“The Mandiant brand is synonymous with unparalleled insights for organizations looking to protect themselves in an ever-changing environment,” Thomas Kurian, CEO of Google Cloud, said in a statement following the announcement of megerg in March.

“Together, we can have a profound impact on securing the cloud, accelerating the adoption of cloud computing, and ultimately making the world a safer place. »


    Learn more about Jay Fitzgerald
Jay Fitzgerald

Jay Fitzgerald is Cybersecurity Editor for CRN. Previously, Jay has freelanced for The Boston Globe, Boston Business Journal, Boston Magazine, Banker & Tradesman, MassterList.com, Harvard Business School’s Working Knowledge, National Bureau of Economic Research and others. He can be reached at jfitzgerald@thechannelcompany.com.

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