FireEye (FEYE: Quote), the security software company, said Thursday it has acquired privately held Mandiant for about $1 billion. Mandiant is a provider of advanced endpoint security products and security incident response management solutions.
As per the terms, FireEye will issue an aggregate of 21.5 million shares and options to purchase shares of FireEye stock and pay about $106.5 million of net cash in the deal to the former Mandiant security holders. Also, FireEye granted certain performance-based retention equity incentives.
The acquisition, which recognizes the ever-increasing intensity of cyber attacks and follows nearly two years of collaboration, creates the industry's leading advanced threat protection vendor with the ability to find and stop attacks at every stage of the attack life cycle, FireEye said in a statement.
According to FireEye, Mandiant is an acknowledged leader in endpoint security, incident response, and remediation, with more than two million endpoints installed globally.
The deal brings together two highly complementary companies and creates an organization uniquely qualified to meet organizations' needs for real-time detection, contextual threat intelligence, and rapid incident response, the company said.
"Organizations today are faced with knitting together a patchwork of point products and services to protect their assets from advanced threats," said David DeWalt, CEO of FireEye.
"Together, the size and global reach of FireEye and Mandiant will enable us to innovate faster, create a more comprehensive solution, and deliver it to organizations around the world at a pace that is unmatched by other security."
Kevin Mandia, Mandiant's founder and chief executive officer prior to the acquisition, has been appointed by the FireEye board to the position of senior vice president and chief operating officer of FireEye.
Mandiant will be integrated with FireEye to provide global services and cloud solutions, including security consulting, incident response, and managed services. Mandiant's endpoint threat detection and response products will be incorporated as a core element of the FireEye Oculus platform.
FireEye stock closed Thursday at $41.13, down $2.48 or 5.69%, on a volume of 783 thousand shares on the Nasdaq.
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by RTT Staff Writer
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