FireEye (NASDAQ:FEYE) is making waves on Friday following several bits of news about the company boosting FEYE stock.
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Here’s all the news that investors in FireEye need to know about the company today.
- First off, the cybersecurity company announced its acquisition of Respond Software.
- Respond Software is a cybersecurity investigation and automation company behind the Respond Analyst software.
- A FireEye news release sets the value of the deal at $186 million in a mix of stock and cash.
- The company says this acquisition will bring its eXtended Detection and Response to a new range of customers.
- In a separate news release, FireEye also announced a $400 million strategic investment led by Blackstone (NYSE:BX).
- Blackstone is teaming up with cybersecurity investment firm ClearSky for the investment.
- This investment gains the investors newly-created 4.5% Series A Convertible Preferred Stock of FireEye.
- These are purchased for $1,000 per share and are convertible into normal shares of FEYE stock at a price of $18 per share.
- FireEye says it plans to use funds from the deal to fuel its acquisition of Respond Software, as well as for other purposes.
- To go along with this, Blackstone senior managing director Viral Patel is joining FEYE’s Board of Directors.
- FireEye was also the target of a downgrade from Barclays analyst Saket Kalia.
- This has the analyst dropping FEYE stock from an equal weight rating to an underweight rating.
- However, the price target of $17 per share remains intact.
FEYE stock was up 6.7% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
