New commercial cybersecurity joint venture - Raytheon|Websense - completedNews
May 29, 2015
WALTHAM, Mass. Raytheon Co. and Vista Equity Partners officials have completed a joint venture transaction that creates a new company combining Websense, a Vista Equity portfolio company, and Raytheon Cyber Products, a product line of Raytheon's Intelligence, Information, and Services business. The newly-formed commercial cybersecurity company will be named on an interim basis as Raytheon|Websense. Company leaders say they expect to introduce a new brand identity once they complete their integration efforts.
Under the terms of the deal, originally announced on April 20, 2015, Raytheon owns 80.3 percent of the new company, while Vista Equity Partners owns 19.7 percent. The joint venture will start operations immediately and will be headquartered in Austin, Texas. John R. McCormack has been named chief executive officer of the new company.
Raytheon invested $1.9 billion (net of cash acquired) to acquire Websense, of which $600 million is in the form of an intercompany loan to the joint venture. Raytheon has also contributed the assets of Raytheon Cyber Products and related intellectual property, which is valued at $400 million. Vista Equity Partners has made a new cash investment of about $335 million for 19.7 percent of the equity interest in the joint venture. Raytheon will then consolidate the operating results of the joint venture, which will be financially reported as a separate business segment of Raytheon.
Websense, which protects organizations from the latest cyberattacks and data theft, has products such as TRITON APX, which provides adaptive cyber security that protects critical data wherever it resides and gives actionable intelligence across the entire threat lifecycle. For more information on Websense, visit www.websense.com.
For more information on Raytheon, visit www.raytheon.com.