Raytheon Chairman and CEO Thomas Kennedy said the threat of cyberattacks, such as the one suffered last year by Target Corp., is increasing as cloud computing and mobile services make companies more vulnerable to costly electronic intrusions by state-sponsored hackers, terrorists, organized crime or insiders.
“CEOs are shaking in their boots,” Kennedy said. He believes the global demand for cybersecurity products and services is exploding, and the joint venture will enable his company to deliver market-beating solutions across the full range of potential customers.
David Wajsgras, who runs Raytheon’s business unit focused on information and intelligence lines, stresses that “Websense is not concentrated in any particular vertical” segment of the cyber market, but is well-positioned in financial services, healthcare, insurance, real estate and manufacturing — areas where Raytheon had not previously been a big player.
Websense CEO John McCormack, who will run the joint venture, sees the tie-up with Raytheon as greatly expanding the range of opportunities his enterprise can pursue.
Raytheon is investing $965 million in cash, providing a $600 million loan and injecting $400 million of existing cyber assets into the as-yet unnamed venture. The private-equity firm, which took Websense private for $890 million in 2013, will also invest $335 million in the venture.
Once the transaction closes in the second quarter, the joint venture will be a separately reporting segment within the Raytheon portfolio of tech businesses.