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Updated: Websense grabbed by Raytheon - report

Reuters reports defence contractor has reached a deal for 80 per cent of security vendor for $1.9bn

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Security vendor Websense has agreed to be acquired by defence contractor Raytheon in a deal worth $1.9bn (£1.3bn), according to Reuters.

Speculation about a deal between the parties has been circulating for a while, with Bloomberg reporting last month that they had entered talks, but the Reuters newswire – citing sources close the matter – reported on Friday that a deal has now been agreed.

Founded in 1994 and headquartered in Austin, Texas, Websense is regarded by Gartner as a leader in secure web gateways and data loss prevention. The vendor claims to have 3,900 global channel partners and 1,500 employees.

In 2013, Websense was taken private by private equity firm Vista Equity Partners in a deal worth $907m. According to Reuters, Raytheon will now take an 80 per cent stake in Websense, with Vista keeping hold of the rest of the company.

News of the deal comes just two weeks after Websense competitor Trustwave agreed a deal to be acquired by Singapore Telecommunications Limited for $810m. Meanwhile, last month another of Webense's peers, security vendor Blue Coat, was acquired by investor Bain Capital for $2.4bn.

Websense had not provided CRN with a statement at the time of publication.

UPDATE: Since this story was first published, Websense has confirmed the Raytheon takeover deal.

In a press statement it said: "Raytheon Company has entered into a definitive agreement with Vista Equity Partners to form a new company combining Websense, a Vista portfolio company, with Raytheon Cyber Products, a business unit of Raytheon's Intelligence, Information and Services (IIS) segment.

"Following successful completion of the transaction, the new company will be a separately reported Raytheon business segment.

"As part of the transaction, Raytheon will contribute $1.9bn (net of cash acquired) to acquire Websense, of which $600m 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 $400m."

 

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