(Bloomberg) — Mandiant Inc. soared 16% after the Information reported that Google is in talks to acquire the cybersecurity company, which had previously drawn interest from Microsoft Corp.
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The deal would be Google’s second-largest transaction ever, the Information said, citing an unidentified person with knowledge of the talks. Bloomberg reported last month that Microsoft was in discussions with Mandiant, which has a market value of more than $5 billion.
Microsoft has now walked away from those talks, people familiar with the matter told Bloomberg. Microsoft pulled out of the discussions more than a week ago on concerns that the company’s collection of security businesses wasn’t a good enough strategic fit, according to one of the people, who asked not to be identified discussing private deliberations.
Representatives for Microsoft and Mandiant didn’t immediately respond to requests for comment. A Google representative declined to comment.
Google and Microsoft are both looking to bolster their cybersecurity operations — an increasingly vital part of the companies’ cloud-computing businesses. Mandiant became a stand-alone company last year when FireEye Inc. sold its security-product business for $1.2 billion to a consortium led by Symphony Technology Group. FireEye had acquired Mandiant in 2013.
The stock climbed to $22.49 by the close on Monday, marking the biggest one-day gain since Feb. 8, when the Microsoft talks were reported. The shares have advanced 28% this year.
Mandiant’s stock retreated in late trading after Bloomberg reported that Microsoft had pulled out of talks, a sign investors were anticipating a bidding war. The shares slipped as much as 6.1%.
The all-time biggest deal by Google, owned by Alphabet Inc., was the 2012 acquisition of Motorola Mobility for about $12.5 billion.
(Updates share reaction in seventh paragraph.)
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