FireEye Stock Soars on $1B Mandiant Buy

by Christopher Freeburn | January 3, 2014 9:42 am

FireEye Stock Soars on $1B Mandiant Buy

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[1] 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[2], 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[3]) recently announced that hackers had stolen data linked to 40 million customer credit and debit cards[4].

Earlier this year, hackers compromised 2.9 million customer accounts[5] at Adobe Systems (ADBE[6]).

Endnotes:
  1. will purchase network forensics firm Mandiant: http://www.usatoday.com/story/cybertruth/2014/01/02/fireeye-acquires-mandiant-in-105-billion-deal/4295329/
  2. since it became a publicly-traded company in September: http://investorplace.com/ipo-playbook/ipo-market-gets-going-again/#.UsbLmXm1Kf0
  3. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  4. stolen data linked to 40 million customer credit and debit cards: http://investorplace.com/2013/12/identity-theft-alert-40m-target-customers-involved-massive-data-breach/#.UsbLIXm1Kf0
  5. compromised 2.9 million customer accounts: http://investorplace.com/2013/10/adobe-hack-attack-exposed-customer-credit-card-info/
  6. ADBE: http://studio-5.financialcontent.com/investplace/quote?Symbol=ADBE

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