FireEye to Sell Products Unit to Symphony-Led Group for $1.2B

FireEye to Divest Products Business to Symphony Technology Group for $1.2 Billion

FireEye, a leading provider of cybersecurity solutions, has reached an agreement to sell its products division to a group of investors spearheaded by Symphony Technology Group. The transaction is valued at $1.2 billion.

Deal Structure and Implications

This all-cash agreement will result in a separation between FireEye’s product-focused operations and its highly regarded digital forensics and incident response division, Mandiant. The split allows each entity to pursue independent growth strategies.

Kevin Mandia, FireEye’s current CEO, stated that the deal will facilitate the expansion of the “high-growth” Mandiant business. It will operate as a standalone company specializing in incident response and security assessments.

Historical Context of the Acquisition

The decision to divide the companies marks a significant shift nearly ten years after FireEye initially acquired Mandiant. This acquisition also led to Mr. Mandia assuming the role of chief executive.

Mr. Mandia further commented: “STG’s dedication to supporting innovative leaders in software and cybersecurity positions them as an excellent partner for FireEye Products. We anticipate a strong working relationship and continued collaboration regarding threat intelligence and specialized knowledge.”

STG’s Perspective

William Chisholm, a managing partner at STG, expressed enthusiasm about the potential of the acquired business. He highlighted the “enormous untapped opportunity” and STG’s expertise in security software and carve-out transactions.

The completion of this deal is currently projected to occur before the end of the fourth financial quarter.

FireEye and Mandiant’s Industry Standing

FireEye has established itself as a prominent figure in the cybersecurity landscape. The company is well-known for its in-depth research into advanced hacking groups, including those with ties to nation-states. Mandiant is frequently called upon to manage and resolve major security breaches.

Notably, Mandiant provided crucial assistance to Colonial Pipeline in recovering from a recent ransomware incident.

Recent Cybersecurity Events Involving FireEye

In December, FireEye publicly disclosed that its own networks had been compromised. This transparency was widely commended within the cybersecurity community. It played a key role in uncovering the sophisticated SolarWinds espionage attack, which was ultimately attributed to Russian intelligence services.

STG’s Expanding Cybersecurity Portfolio

This acquisition further solidifies STG’s position as a major investor in the cybersecurity sector. In March, the firm purchased McAfee’s enterprise division for $4 billion. Last year, RSA was added to their portfolio with a $2 billion investment.

Here's a summary of STG's recent acquisitions: