Websense joint venture announced by Raytheon and Vista Equity Partners
WALTHAM, Mass. Vista Equity Partners and Raytheon announced the completion of a joint venture transaction that created a new commercial cybersecurity company that will be called in the interim Raytheon|Websense. The company brings together the Vista Equity portfolio and Raytheon Cyber Products, a product line of Raytheon's Intelligence, Information, and Services business.
Raytheon owns 80.3 percent and Vista Equity Partners owns 19.7 percent of the company under the terms of the transaction. The company will be based in Austin, Texas and will start operations immediately with John R. McCormack as CEO.
Raytheon invested $1.9 billion (net of cash acquired), out of which $600 million is in the form of intercompany loan, to acquire Websense. Vista equity partners made a cash investment of approximately $335 million for 19.7 percent of the equity interest in the joint venture. Raytheon also contributed Raytheon Cyber Products assets, an estimated value of $400 million.
"The combination of Websense and Raytheon Cyber Products enables us to deliver unprecedented levels of innovation that better protect customers in today's incredibly dynamic and complex business environment," says McCormack. "Advanced attacks and data theft are the new normal; we believe this joint venture provides customers the best defense against such threats."
Raytheon|Websense will financially report as a separate business segment of Raytheon. The company expects to introduce a new brand identity upon completion of standard organizational integration activity.