Raytheon to buy network security company Websense in $1.9-bn deal

US defence contractor Raytheon today struck a deal to buy network security company Websense Inc from private equity firm Vista Equity Partners in a transaction valued at $1.9 billion, including debt, Bloomberg today reported, citing people familiar with the matter.

The new company will be 80-per cent owned by Raytheon and Vista will retain a 20-per cent stake, the report said.

Raytheon will infuse $1.6 billion in cash to the new company, of which $600 million will be a loan, the report added.

Vista had acquired Websense in 2013 for about $907 million. (See: Vista Equity to buy net security firm Websense for $907 mn)

Texas-based Websense was founded in 1884 by Phil Trubey as NetPartners, a reseller of firewalls and other network security products.

The company changed its name to Websense in 1999 and raised 65.7 million through an IPO in 2000.

Its first software product called Websense Internet Screening was launched in 1996 to help customers manage employee use of the web.

Websense provides protection from the cyber attacks and data theft. Its Triton security solutions unify web security, email security, mobile security and data loss prevention.

Raytheon, the maker of the Patriot Missile Defence System, is the world's largest missile-maker with four operating segments; Missile Systems; Integrated Defence Systems; Intelligence, Information and Services; and Space and Airborne System.

It provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems; as well as a broad range of mission support services.

The company has a market capitalisation of $33 billion and posted sales of $23 billion last year.

The Massachusetts-based company last year acquired Blackbird Technologies, a provider of cybersecurity and secure tactical communications to intelligence agencies and special operations units, for $420 million. (See: Raytheon acquires cybersecurity specialist Blackbird Technologies for $420 mn)

San Francisco-based Vista focuses on investing in software and technology-enabled businesses.

With offices in San Francisco, Chicago and Austin, Vista currently invests over $7 billion in capital in successful technology-based companies.