FireEye has announced the sale of its FireEye Products business for $ 1.2 billion to a consortium led by Symphony Technology Group (STG).
The deal, fully cash, is expected to close at the end of the fourth quarter.
FireEye on one side, Mandiant on the other
FireEye says the transaction will split the entity into two: on the one hand, FireEye company’s network, messaging, endpoint and cloud security products; and on the other, Mandiant’s software and services. FireEye Products and Mandiant Solutions will continue to form a single entity until the closing of the transaction. Symphony Technology Group and FireEye will maintain resale and collaboration agreements.
Kevin Mandia, CEO of FireEye, explains that the transaction will allow FireEye to evolve its software platforms. FireEye predicted that its products and associated subscription and support revenue would drop 10-11% in 2021 compared to 2020.
Here’s how FireEye products fit into the company’s first quarter revenue:
In addition, FireEye has authorized a $ 500 million share repurchase program.