FireEye to Sell Product Business for $ 1.2 Billion to Symphony-Led Investor Group
(Reuters) – U.S. cybersecurity firm FireEye Inc on Wednesday said it would sell its product business, including the FireEye name, to a consortium led by private equity firm Symphony Technology Group for $ 1.2 billion cash.
The deal will separate FireEye’s network, email and cloud security products from its cybercrime unit, Mandiant Solutions.
The deal is expected to be completed by the end of the fourth quarter, the company said.
FireEye, one of the largest cybersecurity firms in the United States, also said its board of directors approved a share buyback program of up to $ 500 million.
The company initially acquired Mandiant, founded by Kevin Mandia, who became CEO of FireEye, for approximately $ 1 billion in early 2014. Mandiant will return as an independent company, focused on cyber incident response and cybersecurity testing, and will be listed on the stock exchange after the agreement.
“With the separation you get simplicity, you get focus. Together we have a presence in many markets,” Mandia said in an interview with Reuters about the sale. “A lot of it was really a strain. resources. “
“FireEye can’t do everything,” he added.
The purchase of FireEye marks a major turning point in the rapidly evolving US cybersecurity market. The still fledgling industry has seen many companies bought and merged over the past few years.
In March, Symphony also bought the enterprise division of McAfee for around $ 4 billion. Last year, chipmaker Broadcom Inc bought the corporate operations of Symantec, another major player in the industry, for around $ 10.7 billion.
FireEye is one of the best-known companies in the industry for dealing with many of the most high-profile hacking incidents in US history.
Reporting by Christopher Bing; Additional reporting by Eva Mathews in Bengaluru; Editing by Anil D’Silva and Peter Cooney