The deal will enhance Google's cloud computing business,
which generates more than $19 billion annually, and bolster its security operations
and advisory services, the company said on Tuesday.
The Information reported the news first on Monday.
Microsoft was also said to be eyeing a buyout of Mandiant,
according to news reports. The software giant had previously forecast spending
$20 billion spend on cybersecurity over the next five years.
Google's offer of $23 per share represents a premium of
about 53 percent to Mandiant's stock price levels before reports that Microsoft
was eyeing a deal.
Shares of Mandiant fell 2 percent, while those of Alphabet
rose 0.2 percent to $2532.20 in premarket trading on Tuesday.
Mandiant, which focuses on cyber-incident response and
cybersecurity testing, became a standalone entity last year when FireEye, which
acquired the company in 2013, sold its products business and the FireEye name
for $1.2 billion to a consortium led by private equity firm Symphony Technology
Group.
The firm has become a go-to for news organizations and
companies for investigating cyberattacks, including recent breaches at News Corp
and Nvidia.
The deal is expected to close later this year. © Reuters