U.S. arms maker Raytheon Co is buying network security vendor Websense Inc from private equity firm Vista Equity Partners LLC in a $1.9 billion deal, the latest in the fast-growing cybersecurity market.
Several companies, including Sony Corp, Staples Inc, Home Depot Inc and Target Corp, have been targets of high-profile data thefts over the past two years.
“We are seeing an exponential increase in the number of attacks from highly sophisticated attackers,” Raytheon Chief Executive Thomas Kennedy told Reuters. “It is the combination of those two elements that is leading to an explosion in cybersecurity.”
A cyber attack in mid-2014 on the US Bureau of Investigation, which performs background checks on US government employees, exposed the details of at least 25,000 employees, including those of some undercover agents.
The Websense deal will add more than 20,000 customers to RAYTHEON's portfolio, mainly government customers.
The global cybersecurity market is estimated to reach approximately $156 billion in 2019 from $96 billion in 2014, according to research firm MarketsandMarkets.
Raytheon, which is paying about $1.6 billion including debt for Websense, said it would combine its cybersecurity unit with the business. The deal is valued at $1.9 billion in net proceeds.
The new business, which will be led by Websense CEO John McCormack, will be a separate unit of the company, according to a statement from RAYTHEON.
A board of directors will be formed for the new venture and will include representatives from both Raytheon and Vista, according to statements from the company.
