Raytheon Comp. (RTN) -- America's fifth largest publicly traded defense contractor by market cap -- made a bold bid to establish itself as the leader in cybersecurity contracting. The Cambridge, Mass. weapons firm announced a convoluted deal to partially purchase Websense Inc. -- a top cloud defense startup -- and to merge it with one of its own units. The merged entity will provide a "unified cyber analytics" and "defense-grade cybersecurity" with a focus on cloud data mining and security solution for government networks.
The deal is being guided by venture capital firm Vista Equity Partners LLC. Terms of the deal were not available, but Reuters is reporting that the deal effectively amounts to a $1.7B USD majority stake purchase by Raytheon -- nearly a year's worth of profit for the defense giant.