Alphabet Inc’s (GOOGL.O) Google said on Tuesday it would buy cybersecurity firm Mandiant Inc (MNDT.O) for $5.4 billion in cashas its cloud business skyrockets.

Google’s offer of $23 per share is at a premium of about 53% to Mandiant’s stock price before a report that said Microsoft Corp (MSFT.O) was eyeing a deal to buy the company.

A deal could bolster Google’s cloud computing business, which generates more than $19 billion annually but has been losing billions of dollars a year, and help it compete with bigger rival Microsoft Corp

Mandiant focuses on cyber-incident response and cybersecurity testing.