The deal is expected to unlock the company’s “high-growth” Mandiant Solutions business
FireEye to separate its products business from Mandiant’s controls-agnostic software and services. (Credit: Pete Linforth from Pixabay)
US-based cybersecurity company FireEye has agreed to divest its FireEye Products business to a consortium led by private equity firm Symphony Technology Group (STG) in an all-cash deal worth $1.2bn.
The sale also includes the FireEye name, said the publicly-listed firm.
The products involved in the transaction are FireEye’s Helix Security Platform, Cloudvisory Security Solution, endpoint security, email security, detection on demand, and network security and forensics.
Symphony Technology Group managing partner William Chisholm said: “We are extremely impressed by the FireEye Products business and the mission critical role it plays for its customers.
“We believe that there is enormous untapped opportunity for the business that we are excited to crystallise by leveraging our significant security software sector experience and our market leading carve-out expertise.”
Through the deal, FireEye will separate the products from the controls-agnostic software and services of Mandiant, which was acquired by the former in 2013 for over $1bn.
FireEye said that the sale of the products business will enable the two organisations to expedite growth investments, go after new go-to-market pathways, and channelise innovation on their respective solutions.
The cybersecurity company said that it will enter into agreements at the closing of the deal in order to maximise the benefits for joint customers. The agreements will cover reselling and market cooperation, collaboration, and transitioning of services.
FireEye said that customers and partners will get the full benefit of the agreements as the firms share technology, threat intelligence, telemetry, and also expertise.
FireEye CEO Kevin Mandia said: “We believe this separation will unlock our high-growth Mandiant Solutions business and allow both organisations to better serve customers.
“After closing, we will be able to concentrate exclusively on scaling our intelligence and frontline expertise through the Mandiant Advantage platform, while the FireEye Products business will be able to prioritize investment on its cloud-first security product portfolio.
“STG’s focus on fuelling innovative market leaders in software and cybersecurity makes them an ideal partner for FireEye Products.”
The deal, which is subject to regulatory approvals and closing conditions, is expected to close by the end of Q4 2021.