FireEye acquires Mandiant for $1.05 billion
FireEye has created cloud-based systems to detect malware and Mandiant’s software can analyze cyber attack activity. FireEye is not yet profitable, but said that the acquisition will be immediately accretive to earnings.
Revenue is expected to grow 50% this year. Mandiant is profitable and generates sales of over $100 million per year.
FireEye forecasted their 2014 revenues of hitting between $240 and $250 million, up from around $156-$158 million in 2013. FireEye has a market cap of around $5 billion.
The acquisition of Mandiant will take place in a combination of stock and cash. FireEye issued 21.5 million shares and options worth around $939 million on Monday.
– Chinese hackers spied on five European foreign ministries during G20
[Source: Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry