Alphabets’ Google Opens Talks to Acquire Mandiant – Report

Alphabets’ (GOOGL) Google has opened talks to acquire cybersecurity firm Mandiant (MNDT). Citing a person with knowledge of the ongoing discussions, The Information reports the acquisition could help bolster Google’s cloud computing business. GOOGL shares fell 4.19% to close at $2,527.57 on March 7.

Alphabet is the holding and parent company of Google, the internet giant which accounts for 99% of its revenue. It also owns the app store Google Play and YouTube.

Mandiant Acquisition

According to Reuters, with a $4.53 billion market capitalization, Mandiant has made a name for itself by offering cyber-incident response and cybersecurity testing solutions. Google acquiring Mandiant will mark its second-largest acquisition ever.

A deal for the company could strengthen Google’s competitive edge in the cloud sector, allowing it to take on Microsoft (MSFT), which is also interested in the company. According to The Information, Google employees are increasingly pushing for the acquisition of more security firepower to take on Microsoft, which offers an array of security products.

According to Reuters, Mandiant became a standalone company last year. This is after FireEye (FEYE), which had acquired the company in 2013, decided to sell its products business and the FireEye name to a consortium led by Symphony Technology Group.

Stock Rating

Last week, RBC Capital analyst Brad Erickson reiterated a Buy rating on Alphabet stock with a $3,550 price target, implying 40.45% upside potential to current levels.

Consensus among analysts is a Strong Buy based on 30 Buys. The average Alphabet price target of $3,499 implies 38.43% upside potential to current levels.

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