FireEye sells business and product name for $ 1.2 billion

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

Beck Diefenbach | Reuters

FireEye said Wednesday that it is 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 US cybersecurity firm said the sale will split Mandiant Solutions, its cyber forensics unit, from its cloud, network and email security products.

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

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

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

“After closing, we will be able to focus exclusively on scaling our top-of-the-line intelligence and expertise through the Mandiant Advantage platform, while the FireEye product business will be able to prioritize investing in its cloud security product portfolio first,” Mandia continued. .

The sale is just the latest example of a high-value technology deal to go to private equity.

With the exception of special-purpose acquisition companies, seven of the 12 largest technology acquisitions in the US in 2021 have been made by private equity firms, according to FactSet data.

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

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