FireEye pays $1 billion for Mandiant

Cyber security firms recently announced creation of 250 jobs in Dublin and Cork

Security software provider FireEye has acquired Mandiant in a deal worth $1.5 billion. Photo: Reuters

Security software provider FireEye has acquired Mandiant in a deal worth $1.5 billion. Photo: Reuters

Fri, Jan 3, 2014, 12:37

Security software provider FireEye has acquired Mandiant, a company known for emergency responses to computer network breaches, in a deal worth $1.05 billion.

The two companies recently established operations in Ireland and have announced 250 new jobs for Dublin and Cork. Mandiant officially opened an engineering and security operations facility in Dublin last October, which will result in the creation of 100 new jobs. Last March, FireEye announced plans to create 150 jobs at a new EMEA technical support centre in Cork.

FireEye said it plans to integrate Mandiant technologies such as network sensors and malware signatures into products it sells.

While sales of older anti-virus products have been on the decline, security experts expect strong growth in both FireEye’s cloud-based systems for detecting malicious software and Mandiant’s software that analyzes cyber attacks.

About a year ago the two companies entered into a technology development agreement that made it easier to deploy their products together. With the merger, FireEye will gain Mandiant’s team of forensics investigators.

“They have these very strong Navy ‘cyber’ Seals who respond to breaches and are very good at what they do,” FireEye chief executive Dave DeWalt said about Mandiant.

“My aim is to create the strongest security company in the world.”

FireEye yesterday announced preliminary revenue for the fourth quarter above its previous estimate. It said fourth-quarter revenue would be between $55 million and $57 million, compared to its previous estimate of between $52 million to $54 million.

The company said its 2014 revenue will be $400 million to $410 million as a result of the Mandiant deal, up from an anticipated $159 million to $161 million in 2013.

Mandiant has about 500 customers and generated about $100 million in sales in 2013, Mr DeWalt said.

Additional reporting: Agencies