News of a major acquisition by network security provider FireEye (FEYE) sent FEYE stock vaulting more than 24% in Friday morning trading.
FireEye said it will purchase network forensics firm Mandiant in a stock and cash deal valued at $1.05 billion. On Monday, FireEye issued $939 million worth of FEYE shares and options. Private equity investors in Mandiant will also be paid $106.5 million in cash under the deal, USA TODAY notes.
FireEye has a current market valuation of about $5 billion. FireEye has posted losses since it became a publicly-traded company in September, but has also seen sales grow.
Dave DeWalt, CEO of FireEye was formerly Mandiant’s Chairman. DeWalt has not indicated when FireEye is likely to generate income.
Cybersecurity is increasingly a major concern for corporate America. Target (TGT) recently announced that hackers had stolen data linked to 40 million customer credit and debit cards.