Raytheon (NYSE: RTN) and Vista Equity Partners have agreed to integrate Raytheon’s cyber products division and Vista’s portfolio company Websense into a new, single cybersecurity technology firm through a transaction the companies expect to finish in the second quarter of 2015.
Raytheon said Monday it will also acquire Websense for approximately $1.9 billion, Â of which $600 million will represent a loan from Raytheon toÂ the newÂ joint venture.
Upon completion of the deal, RaytheonÂ will own 80.3 percent of the planned joint venture and Vista will putÂ $335 million into the JV for a 19.7 percent ownershipÂ stake.
Thomas Kennedy, Raytheon chairman and CEO, said the JV would combine technology offerings from his company and Websense in a bid to help organizations defend infrastructure against sophisticated threats.
“Commercial companies are evolving their infrastructure with cloud computing, mobility and the internet of things to stay competitive and, as a result, they have become more vulnerable than ever, ” said David Wajsgras, president of Raytheon’s intelligence, information and services business segment.
The business will be led by Websense CEO John McCormack and form a board of directors that will include Raytheon and Vista representatives.
McCormack said Websense works with nearlyÂ 21, 000 customersÂ and close toÂ 2, 200 channel partners.
Raytheon will also contribute the assets of its cyber products business organizationÂ and related intellectual property, which the company values at aroundÂ $400 million.