The US-based multinational Raytheon Company has entered into a definitive agreement with Vista Equity Partners to form a new cybersecurity company combining Websense, a Vista company, with Raytheon Cyber Products, a business unit of Raytheon’s Intelligence, Information and Services (IIS) segment.
Thomas A Kennedy, Raytheon Company Chairman and CEO, said: “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. As the business enterprise evolves to meet the networked demands of today’s mobile and cloud economy, these threats will grow in size and scale,” said . “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.”
The new company will be a separately reported Raytheon business segment. The CEO of the new company will be John R McCormack, CEO of Websense. A Board of Directors will be established for the new company and will include representatives of Raytheon and Vista Equity Partners.
David C Wajsgras, President of Raytheon Intelligence, Information and Services business, said: “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.”For nearly two decades, Raytheon has provided cybersecurity technology and support to some of the world’s largest organizations, spanning government, retail and financial services. I am pleased to welcome John McCormack and the Websense team to Raytheon. Our joint venture will deliver the power of TRITON, a market leading integrated security platform, with the strength of SureView® software products to protect commercial business across the globe.”
John R McCormack, CEO of Websense, said: “As a cybersecurity 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. The opportunity to provide our growing customer base with Raytheon’s patented technology positions us to serve customers as they manage the emerging and long-term cyber threat environment.”
Raytheon reports that its net cash contribution is about $1.57 billion for an 80.3pc ownership of the joint venture. Raytheon will consolidate the results of the joint venture. Raytheon will contribute $1.9 billion (net of cash acquired) to acquire Websense, of which $600m will be as an inter-company loan to the joint venture. Raytheon will also contribute the assets of Raytheon Cyber Products and related intellectual property, which is valued at $400m. 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.
