FireEye sells business and name for $ 1.2 billion

FireEye sells business and name for $ 1.2 billion

The FireEye logo is seen outside the company’s offices in Milpitas, Calif., December 29, 2014.

Beck Diefenbach | Reuters

FireEye on Wednesday announced it was selling its product business, including the FireEye name, to a consortium led by private equity firm Symphony Technology Group for $ 1.2 billion in cash.

The U.S. cybersecurity firm said the sale would separate Mandiant Solutions, its cybercrime unit, from its cloud, network and messaging security products.

FireEye shares were relatively stable after office hours. The company said the deal is expected to be completed by the end of the fourth quarter.

FireEye was the subject of a cyberattack in December last year, which it said was state sponsored. Microsoft in February credited the company’s transparency about the breach by helping it discover that it had also been attacked.

FireEye CEO Kevin Mandia said the sale would help him grow his Mandiant Solutions business.

“After closing, we will be able to focus exclusively on scaling our front-line intelligence and expertise through the Mandiant Advantage platform, while the FireEye Products business will be able to prioritize investments across its portfolio of cloud-based security products, ”added Mandia.

The sale is just the latest example of a large tech deal going to private equity.

With the exception of ad hoc acquisition companies, seven of the 12 biggest technology acquisitions in the United States in 2021 were made by private equity firms, according to FactSet data.

In Wednesday’s announcement, FireEye also said its board of directors had approved a share buyback program of up to $ 500 million.

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