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Raytheon and Vista Equity create cybersecurity JV

Staff writer |
Raytheon Company and Vista Equity Partners created a new company that combines Websense, Vista' company, and Raytheon Cyber Products, a product line of Raytheon's Intelligence, Information and Services business.

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The newly-formed commercial cybersecurity company will be known on an interim basis as Raytheon|Websense. The company expects to introduce a new brand identity upon completion of standard organizational integration activity.

Under the terms of the joint venture transaction originally announced on April 20, 2015, Raytheon owns 80.3 percent of the new company. Vista Equity Partners owns 19.7 percent.

The joint venture will start operations immediately and will be based in Austin, Texas. John R. McCormack has been named CEO of the new company.

Raytheon has 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 approximately $335 million for 19.7 percent of the equity interest in the joint venture.

Raytheon will consolidate the operating results of the joint venture, which will be financially reported as a separate business segment of Raytheon.

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