FireEye to sell FireEye for more than $1 billion, become Mandiant

FireEye Inc. is promoting its FireEye unit to a private-equity agency for more than $1 billion, which can lead to a reputation change and new share-repurchase program.


introduced Wednesday afternoon that it’s going to sell its merchandise enterprise to Symphony Technology Group for $1.2 billion in money, earlier than taxes and costs. The transaction consists of the title FireEye, whereas the enterprise that is still will probably be known as Mandiant Solutions, referring to Chief Executive Kevin Mandia’s previous venture that was acquired by FireEye in 2014.

In a information launch, FireEye stated that the deal “will separate FireEye’s network, email, endpoint and cloud-security products, along with the related security management and orchestration platform, from Mandiant’s controls-agnostic software and services, enabling both organizations to accelerate growth investments, pursue new go-to-market pathways, and focus innovation on their respective solutions.”

FireEye inventory was halted forward of the announcement, which got here simply after the day’s common session had ended, and fell more than 6% in after-hours motion as soon as it started buying and selling once more at 4:30 p.m. Eastern. The decline lessened because the prolonged session moved alongside, and was not too long ago down much less than 1%. Shares closed with a 0.9% achieve at $22.53 and have now gained 78.1% up to now 12 months, because the S&P 500 index

has elevated 36.4%.

When FireEye went public in 2013, it was principally identified for a mixture of {hardware} and software program that helped IT departments safe their networks, however it has tried to refocus its efforts since Mandia grew to become a part of management. The Mandiant division is understood more for its consulting work to assist corporations discover, monitor and resolve breaches.

“We will be able to concentrate exclusively on scaling our intelligence and front-line expertise through the Mandiant Advantage platform, while the FireEye Products business will be able to prioritize investment on its cloud-first security product portfolio,” Mandiant stated in Wednesday’s launch.

Symphony Technology Group, also referred to as STG, previously purchased the enterprise-security business of McAfee Corp.
The two sides anticipate the deal to shut by the top of the 12 months.

Simultaneously, FireEye introduced that its board has permitted a $500 million share-repurchase plan. A convention name is deliberate for 5 p.m. Eastern to focus on the deal.

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