Cybersecurity firm FireEye sold to private equity for $1.2 billion
Written by Finbarr Toesland Mon 7 Jun 2021
In an all-cash transaction of $1.2 billion, FireEye announced the sale of their products business and brand to a consortium led by Palo Alto-based private equity firm Symphony Technology Group.
Incident response and threat intelligence unit Mandiant will be spun out as part of this agreement. Bought by FireEye in 2013 for over $1 billion, Mandiant will now focus on controls-agnostic software and services.
The deal is set to close by the end of the fourth quarter of 2021, subject to a number of regulatory approvals, with up to $500 million of FireEye shares being repurchased by directors. FireEye was founded in 2004 and over the past 17 years the business has provided its services to a range of major companies and government agencies.
“We believe this separation will unlock our high-growth Mandiant Solutions business and allow both organizations to better serve customers,” said FireEye Chief Executive Officer Kevin Mandia. “After closing, we will be able to concentrate exclusively on scaling our intelligence and frontline expertise through the Mandiant Advantage platform, while the FireEye Products business will be able to prioritize investment on its cloud-first security product portfolio.
“STG’s focus on fueling innovative market leaders in software and cybersecurity makes them an ideal partner for FireEye Products. We look forward to our relationship and collaboration on threat intelligence and expertise,” he adds.
FireEye has been involved in a number of high-profile cybersecurity events in recent years, most recently the Colonial Pipeline cyberattack that disrupted the fuel supply across the US East Coast. The cybersecurity firm has also been on the receiving end of attacks, with the company saying it was targeted by cybercriminals late last year.