Google (NASDAQ:GOOGL) is in talks to purchase cybersecurity behemoth Mandiant (NASDAQ:MNDT), The Information reported Monday.
The cybersecurity stock took off late in the regular trading session after the report was published, and Mandiant ended the trading day 16.05% higher at $22.49.
The stock was giving up 4.4% of those gains in after-hours trading. Here's what investors need to know.
What Happened: The $4.53-billion company reported earnings on Feb. 8 with sales of $133 million, up 21% year over year, above the consensus of $131.5 million. The company reported adjusted earnings per share loss of 10 cents, which beat the consensus estimate of a 13-cent loss, making the firm a prime buyout target.
Why It Matters: Microsoft (NASDAQ:MSFT) is reportedly also interested in acquiring the cybersecurity firm.
The deal would bolster efforts to protect customers of either tech giant from hacks and breaches.
The potential deal would also give Microsoft or Google even deeper insight into powerful hacks.
Both Google and Microsoft have individually acquired smaller cybersecurity firms in 2021 and 2022.
Talks of both firms' interest in acquiring the company points to the importance of national security, including cyberwarfare.
