Kasperski Lab is expected to announce an $8.5-million stake in China’s largest cybersecurity firm after the two companies agreed to a sale, Reuters reported.
The Chinese government has been aggressively ramping up its cybersecurity efforts in recent years as it looks to modernize its security services after a string of deadly cyberattacks and a devastating cyber-attack in 2016 that took down major Chinese companies and government agencies.
In the months leading up to the deal, Kasperska had been pushing the Chinese government to use the new cyber security expertise it has amassed as it seeks to improve its overall capabilities.
In December, Kaksa reported that it had collected $2.3 billion from a Chinese investor and that its cyber threat analysis was “highly accurate.”
It also said that the Chinese firm’s cyber defenses had improved and it had secured more than $5 billion worth of business for the U.S. and other countries.
In July, the U, U.K. and Germany joined other nations in passing a bill that would make it a crime for U.N. member states to block or block access to encrypted messages.
Kaspersky has been a target of the Chinese authorities before.
The company was forced to shut down its U. S. operations in China after it was revealed that it was one of the companies that the National Security Agency (NSA) tapped into to help spy on China’s foreign intelligence services.
Kaksa also was caught up in a spy scandal that spanned at least a decade.
In 2002, a former spy who worked for Kaksi reported that the company had stolen secrets and provided them to the FBI.
In addition to Kaksky, the Chinese Government has also said it would sell a majority stake in a cybersecurity firm that is the world’s biggest vendor of cloud computing technology.