Google is reportedly considering acquiring the cyber forensics and incident response firm Mandiant (formerly FireEye) according to a report from Reuters. The acquisition will bolster Google’s cloud computing business and help it compete against Microsoft, which also announced its intent to buy Mandiant exactly a month ago but has since backed out of the transaction reportedly citing a poor strategic fit. Following the rumor, Mandiant’s shares spiked 16% on the Nasdaq with its market capitalization increasing to nearly USD 5.3 billion.

This would be Google’s second acquisition in 2022, following the purchase of Siemplify for USD 500 million in January , which came on the heels of Google’s pledge in August 2021 to invest USD 10 billion in cybersecurity over the next five years. Google Cloud invested USD 50 million in Cybereason in October 2021.

Analyst QuickTake: This acquisition talk comes after the threat intelligence company FireEye entered into a deal to sell its product business and FireEye name to a consortium led by Symphony Technology Group (STG) for USD 1.2 billion. The sale split FireEye’s cloud, network, email, and endpoint security products along with its security management and orchestration platform, from Mandiant Solutions, which FireEye originally acquired for USD 1 billion in 2014. Mandiant Solutions was to use the sales proceeds to expand further. The now-acquired FireEye, four months later announced a merger with sister company McAfee Enterprise, another cybersecurity giant previously acquired by STG.