FireEye Inks Mandiant Deal
After the Fiat deal was struck earlier in the week, many on the street started to speculate that 2014 would be the year for acquisitions. On Thursday, after the market closed, the street was welcomed to yet another interesting acquisition. The cyber security company FireEye (NASDAQ:FEYE) has acquired Mandiant. Mandiant a firm known for responses to network breaches, was purchased in a deal worth more than $1 billion. Over the last few years we have seen great consolidation within the cyber security space.
A number of large purchases have been made as the larger firms positioned themselves for increasing demand for cyber defense products. Mandiant rose to notoriety last year after it alleged that a secretive branch of China’s military had stolen data from more than 100 global firms.
The deal clocks in at one of the largest ones in the sector and comes amid increased worries over cyber security.
Following the deal, investors praised FireEye ending shares soaring. Shares of the company rose 24% in after hours trading in New York on the deal amid a relatively flat broad market.
David DeWalt, the chief executive of FireEye commented on the deal by stating:
“Organizations today are faced with knitting together a patchwork of point products and services to protect their assets from advanced threats, … Together, the size and global reach of FireEye and Mandiant will enable us to innovate faster, create a more comprehensive solution, and deliver it to organizations around the world at a pace that is unmatched by other security vendors.”
It looks like the deal will be beneficial to both the firms, and the consumers involved in the transaction. FireEye’s clients will most certainly be happy with the news.
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