U.S. cybersecurity firm FireEye is selling its product division and name for $ 1.2 billion to a consortium led by private equity firm Symphony Technology Group (STG). The deal is due at the end of the fourth quarter.
The activity split in two
This operation will split the activities of FireEye in two, which will therefore become Mandiant. Products dedicated to securing networks, emails, terminals and the cloud are sold to STG. While the American giant retains control of Mandiant’s software and services, specializing in digital investigation and incident detection, resulting from the acquisition of Mandiant in 2014.
This transaction should allow “the two organizations to accelerate growth investments, pursue new ways to market and focus innovation on their respective solutions,” FireEye hopes in its press release. The activities of the Products division and Mandiant Solutions will continue to operate as a single entity until the closing of the transaction.
FireEye alongside McAfee and RSA
Through this transaction, the Californian company becomes the latest cybersecurity giant to enter STG’s portfolio. In March, Symphony bought out McAfee’s corporate operations for $ 4 billion and last year, RSA, a Dell subsidiary, for $ 2 billion.
FireEye has become one of the most prominent names in cybersecurity, known for its research on hacking groups, some linked to governments, and its Mandiant unit specializing in responding to major security incidents. The latter was also called in to help Colonial Pipeline manage its ransomware that caused the paralysis of one of the main oil pipelines on the East Coast of the United States.
Last December, FireEye admitted that its own networks had been hacked, an initiative hailed across the cybersecurity industry for helping accelerate efforts that led to the discovery of the SolarWinds spy attack, attributed later to Russian foreign intelligence.