Raytheon beefs-up cyber security capabilities with Websense acquisition, SureView launch
WALTHAM, Mass., 22 April 2015. Cyber security experts at the Raytheon Co. announced plans this week to buy a majority stake in Websense Inc. in Austin, Texas, which specializes in protecting organizations from advanced cyber attacks and data theft.
The $1.57 billion transaction will enable Raytheon to form a new cyber security company by combining Websense with Raytheon Cyber Products, a business unit of Raytheon's Intelligence, Information and Services (IIS) segment in Aurora, Colo. Raytheon also has launched new cyber security tools.
The new company will combine Raytheon's advanced cyber security technologies and the Websense TRITON cyber security tools to provide defense-grade cyber security to combat evolving cyber threats to the U.S. military and its allies.
Websense provides the TRITON APX security tools that unify Web, email, data, and endpoint security to stop advanced persistent threats, targeted attacks, and evolving malware. Websense prevents data breaches, intellectual property theft, and enforces security compliance and best practices.
Raytheon will have an 80.3 percent ownership stake in the joint venture with Websense. The remaining 19.7 percent will belong to Vista Equity Partners in San Francisco, which has owned Websense. The deal should close sometime this summer.
The new company will be a separately reported Raytheon business segment. The CEO of the new company will be John McCormack, CEO of Websense, and its board of directors will include representatives of Raytheon and Vista Equity Partners.
One day after the announcing the Websense acquisition Raytheon Intelligence, Information and Services introduced the SureView suite of cyber security tools to help enterprises operate in the face of sophisticated cyber threats.
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SureView is designed to combine human and machine learning to prevent insider threats, reduce the amount of time an external threat remains in an organization's network, and provide actionable intelligence that helps eliminate future attacks.
SureView designers assume that establishing an impenetrable perimeter is impossible, and organizations must be prepared to operate effectively through and survive from cyber attacks. It protects against insider threats and advanced threats; verifies the integrity of system memory; and applies analytics to enable contextual awareness and cyber intelligence for real-time remediation.
The acquisition of Websense will bring even more to the cyber security table for Raytheon. "As a cyber security market leader, Websense provides a proven technology platform, a team with depth and breadth of industry experience, over 21,000 customers, and a delivery channel of over 2,200 partners," McCormack says.
"The market for advanced cyber solutions that protect and defend global industry and infrastructure is rapidly growing due to the sophisticated threats posed by well-funded, nation-state adversaries and criminal networks," says Raytheon Chairman and CEO Thomas Kennedy.
"The new joint venture will combine Raytheon Cyber Products and Websense capabilities to deliver the advanced, defense-grade technology solutions needed to meet this evolving threat," Kennedy says.
"Commercial companies are evolving their infrastructure with cloud computing, mobility and the internet of things to stay competitive and, as a result, they have become more vulnerable than ever," says David Wajsgras, President of Raytheon Intelligence, Information and Services.
As part of the transaction, Raytheon will contribute $1.9 billion (net of cash acquired) to acquire Websense, of which $600 million will be in the form of an intercompany loan to the joint venture. Raytheon will also contribute the assets of Raytheon Cyber Products and related intellectual property, which is valued at $400 million.
The $1.9 billion in cash plus $400 million in value for Raytheon Cyber Products results in an enterprise value for the venture of $2.3 billion, with capitalization of $1.7 billion in equity and $600 million in intercompany debt to Raytheon. Vista Equity will subsequently invest approximately $335 million for a 19.7 percent equity stake in the new company.