Google recently announced plans to acquire cybersecurity firm Mandiant for $5.4 billion, in a bid to bolster its services and attract new customers.
However, as with any huge acquisition, regulators are scrutinizing the deal to make sure it succeeds, especially in terms of competition.
In a filing with the U.S. Securities and Exchange Commission (SEC), Mandiant executives revealed that their company and Google had received requests from the U.S. Department of Justice (DOJ).
“On March 21, 2022, Mandiant and Google filed the notification and reporting forms required under the HSR Act with the Department of Justice (the “DOJ”) and the Federal Trade Commission,” the filing explains.
“On April 20, 2022, Mandiant and Google each received a request for additional information… from the DOJ as part of the DOJ’s review of the merger. The issuance of the second request extends the waiting period under the HSR Act for up to 30 days after Mandiant and Google have substantially complied with the second request, unless the waiting period is earlier terminated by the DOJ or extended by Mandiant’s agreement and Google.”
The merger is still expected to complete by 2022, but that could present a problem for the search giant and its plans to cement its place in the cybersecurity space with network mapping, ransomware protection, and Mandiant’s risk management services.
Both parties expect to respond quickly to requests from the DOJ, which have been described as routine.
A huge movement in the security space
Google’s purchase of Mandiant is a very big deal and it’s no surprise that various parties are opposed to the merger. Recently, a shareholder filed a lawsuit claiming that Mandiant made “substantially incomplete and misleading” letters to shareholders.
Whether these moves go anywhere remains to be seen – and Google is presumably pretty confident it can get the deal done – but the deal would put one of the biggest cybersecurity companies under the direct control of one of the biggest. big companies in the world.
Mandiant has made a name for itself by offering tools to detect and counter malware and other forms of cyberattacks, as well as offering public research on a variety of online harms.
Mandiant has also recently teamed up with CrowdStrike, its main rival, which is perhaps a sign of goodwill on the part of the company before the scrutiny of regulators.
Through the registry