FireEye Announces Acquisition of Mandiant
FireEye Announces Acquisition of Mandiant
Combination Creates Industry-leading Vendor With a Complete Solution for
Detecting, Resolving, and Preventing Advanced Threats
MILPITAS, Calif., Jan. 2, 2014 (GLOBE NEWSWIRE) -- FireEye (Nasdaq:FEYE), the
leader in stopping today's advanced cyber attacks, announced today that it has
acquired privately held Mandiant, the leading provider of advanced endpoint
security products and security incident response management solutions. The
acquisition, which recognizes the ever-increasing intensity of cyber attacks and
follows nearly two years of collaboration, creates the industry's leading
advanced threat protection vendor with the ability to find and stop attacks at
every stage of the attack life cycle. The transaction closed on December
30, 2013.
The combination of FireEye and Mandiant brings together two highly complementary
companies, each a recognized leader and innovator in security, and creates an
organization uniquely qualified to meet organizations' needs for real-time
detection, contextual threat intelligence, and rapid incident response. FireEye
pioneered the use of virtual machine technology in security with the
introduction of its purpose-built virtual machine-based Multi-Vector Virtual
Execution (MVX) engine. With more than two million virtual machines deployed
worldwide, the company's virtual machine-based Web, email, data center, and
mobile security solutions provide real-time, dynamic threat protection to more
than 1,500 government, enterprise, and small and mid-sized customers.
Mandiant is an acknowledged leader in endpoint security, incident response, and
remediation, with more than two million endpoints installed globally. As a
trusted security advisor to more than one-third of the Fortune 100, Mandiant's
experts have responded to hundreds of high-profile security incidents and bring
deep security and incident response expertise to FireEye. The combined
organization unifies the critical components required to provide state-of-the-
art cyber security: the most complete library of actionable threat intelligence
on advanced threats and a product suite that can apply that intelligence to
detect and prevent attacks on both the network and on endpoints.
This powerful combination of security products and threat intelligence is
enhanced by expert security consulting, incident response, and managed security
services enabling organizations to improve their security posture and resolve
security incidents whenever and wherever they arise.
"Organizations today are faced with knitting together a patchwork of point
products and services to protect their assets from advanced threats," said David
DeWalt, chairman of the board and chief executive officer of FireEye. "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."
Mandiant expands FireEye's ability to stop advanced attacks at the earliest
phases of the attack life cycle with:
* Endpoint Threat Detection, Response, and Remediation Products
Mandiant pioneered and continues to lead the industry for endpoint-based
advanced threat detection and response. Mandiant's endpoint products, which
are already integrated with the FireEye platform, enable security teams to
make faster, more accurate decisions about potential security incidents
while eliminating blind spots by connecting the dots with the FireEye
network-based threat detection and prevention platform.
* Advanced Threat Intelligence
Mandiant brings unrivaled depth in intelligence on next-generation attacks,
which is continually gathered from ongoing monitoring of more than two
million endpoints and by incident response and remediation teams who serve
on the front lines combating the most advanced attacks. When this depth of
threat intelligence is paired with the breadth of the FireEye real-time
threat intelligence gathered from more than two million virtual machines,
organizations will have unmatched detection and contextual information about
attempted attacks, including the level of risk, the identity of the
attackers, and the intended target of the attack.
* Incident Response and Security Consulting Services
Endpoint protection, security incident response, and remediation have been
Mandiant's primary focus and expertise since its inception. Mandiant's
extensive team of highly skilled incident response experts has performed
hundreds of incident response investigations across all industries and at
organizations of all sizes. In addition, Mandiant brings its Mandiant
Managed Defense monitoring service to FireEye. The addition of these skills
and expertise significantly expand the ability of FireEye to offer value-
added services on the FireEye Oculus platform.
Mandiant has been a strategic alliance partner of FireEye since April 2012. The
combination of the two companies is a natural extension of this partnership and
their integrated product offering, which both companies announced in February
2013.
Kevin Mandia, Mandiant's founder and chief executive officer prior to the
acquisition, has been appointed by the FireEye board of directors to the
position of senior vice president and chief operating officer of FireEye. Mr.
Mandia has been profiled on the cover of Fortune magazine and recognized by
Foreign Policy magazine as one of the 100 leading global thinkers of 2013.
"The combination of FireEye and Mandiant will deliver end-to-end protection and
meaningful value to customers," said Mr. Mandia. "By joining FireEye and
Mandiant, we will be able to deliver fully integrated products and services that
help organizations protect themselves from attacks. The combined product
portfolio will cover all the major attack points within an organization, and our
expanded services capacity will allow us to quickly pivot to incident response
when necessary to reduce the impact of security breaches."
Mandiant will be integrated with FireEye to provide global services and cloud
solutions, including security consulting, incident response, and managed
services. Mandiant's endpoint threat detection and response products will be
incorporated as a core element of the FireEye Oculus platform.
Financial Terms of the Transaction
The acquisition was approved by the shareholders of Mandiant and the boards of
directors of both companies. Under the terms of the merger agreement, FireEye
will issue an aggregate of 21.5 million shares and options to purchase shares of
FireEye stock and pay approximately $106.5 million of net cash in the
transaction to the former Mandiant security holders. In addition, FireEye
granted certain performance-based retention equity incentives.
Webcast and Conference Call Information
FireEye will host a live webcast with slides to discuss the transaction on
January 2, 2014 at 2:00 P.M. Pacific time (5:00 P.M. Eastern time). The webcast
may be accessed from the Investor Relations section of the FireEye website at
http://investors.FireEye.com. Additionally, interested parties may access an
audio-only conference call by dialing toll free 1-877-312-5521 within the U.S.,
or 1-678-894-3048 from international locations.
The archived webcast will be available via the Investor Relations section of the
FireEye website at http://investors.FireEye.com. A conference call replay will
be available approximately one hour after the conclusion of the event on January
2 through January 9, 2014 by dialing toll free 1-855-859-2056 within the U.S. or
1-404-537-3406 from international locations, and entering conference code
30005211.
About FireEye, Inc.
FireEye has invented a purpose-built, virtual machine-based security platform
that provides real-time threat protection to enterprises and governments
worldwide against the next generation of cyber attacks. These highly
sophisticated cyber attacks easily circumvent traditional signature-based
defenses, such as next-generation firewalls, IPS, anti-virus, and gateways. The
FireEye Threat Prevention Platform provides real-time, dynamic threat protection
without the use of signatures to protect an organization across the primary
threat vectors and across the different stages of an attack life cycle. The core
of the FireEye platform is a virtual execution engine, complemented by dynamic
threat intelligence, to identify and block cyber attacks in real time. FireEye
has over 1,500 customers across more than 40 countries, including over 100 of
the Fortune 500.
About Mandiant
Mandiant was founded in 2004. The company was named "Best Security Company" by
SC Magazine in 2012 and 2013 and counts more than 33 percent of the Fortune 100
as clients. Bloomberg BusinessWeek profiled Mandiant as the "go-to responder for
cyber-espionage attacks", and the company received widespread coverage in
February 2013 for its report, "APT1: Exposing One of China's Cyber Espionage
Units", which traced attacks on 141 companies to Unit 61398 of the People's
Liberation Army, supporting allegations of China's involvement in state-
sponsored espionage.
Forward-Looking Statements
This press release contains forward-looking statements about the expectations,
beliefs, plans, intentions and strategies of FireEye relating to FireEye's
acquisition of Mandiant. Such forward-looking statements include statements
regarding future product offerings; expected benefits to FireEye, Mandiant and
their respective customers; expected financial impact of the acquisition on
FireEye; and plans regarding Mandiant and Mandiant personnel. These statements
reflect the current beliefs of FireEye and are based on current information
available to us as of the date hereof, and we do not assume any obligation to
update the forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made. The ability of
FireEye to achieve these business objectives involves many risks and
uncertainties that could cause actual outcomes and results to differ materially
and adversely from those expressed in any forward-looking statements. These
risks and uncertainties include the failure to achieve expected synergies and
efficiencies of operations between FireEye and Mandiant; the ability of FireEye
and Mandiant to successfully integrate their respective market opportunities,
technology, products, personnel and operations; the failure to timely develop
and achieve market acceptance of combined products and services; the potential
impact on the business of Mandiant as a result of the acquisition; the loss of
any Mandiant customers; the ability to coordinate strategy and resources between
FireEye and Mandiant; the ability of FireEye and Mandiant to retain and motivate
key employees of Mandiant; general economic conditions; as well as those risks
and uncertainties included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations," in
our Form 10-Q filed with the Securities and Exchange Commission on November
14, 2013 for the quarter ended September 30, 2013, which is available on the
Investor Relations section of our website at investors.FireEye.com and on the
SEC website at www.sec.gov.
© 2014 FireEye, Inc. All rights reserved. FireEye, Multi-Vector Virtual
Execution and Oculus are registered trademarks or trademarks of FireEye, Inc. in
the United States and other countries. All other brands, products, or service
names are or may be trademarks or service marks of their respective owners.
CONTACT: Investor Contact
Kate Patterson
FireEye, Inc.
kate.patterson@fireeye.com
408-321-4957
Media Contact
Vitor De Souza
FireEye, Inc.
vitor.desouza@fireeye.com
415-699-9838
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Source: FireEye via GlobeNewswire
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