DGAP-News: FireEye Announces Acquisition of Mandiant

| Source: EQS Group AG
DGAP-News: FireEye /
FireEye Announces Acquisition of Mandiant

02.01.2014 / 22:00


Combination Creates Industry-leading Vendor With a Complete Solution for
Detecting, Resolving, and Preventing Advanced Threats 

MILPITAS, Calif., 2014-01-02 22:00 CET (GLOBE NEWSWIRE) --
FireEye (Nasdaq:FEYE), the leader in stopping today's advanced cyber attacks,
announced today that it has acquired privately held Mandiant, the leading
provider of advanced endpoint security products and security incident response
management solutions. The acquisition, which recognizes the ever-increasing
intensity of cyber attacks and follows nearly two years of collaboration,
creates the industry's leading advanced threat protection vendor with the
ability to find and stop attacks at every stage of the attack life cycle. The
transaction closed on December 30, 2013. 

The combination of FireEye and Mandiant brings together two highly
complementary companies, each a recognized leader and innovator in security,
and creates an organization uniquely qualified to meet organizations' needs for
real-time detection, contextual threat intelligence, and rapid incident
response. FireEye pioneered the use of virtual machine technology in security
with the introduction of its purpose-built virtual machine-based Multi-Vector
Virtual Execution (MVX) engine. With more than two million virtual machines
deployed worldwide, the company's virtual machine-based Web, email, data
center, and mobile security solutions provide real-time, dynamic threat
protection to more than 1,500 government, enterprise, and small and mid-sized

Mandiant is an acknowledged leader in endpoint security, incident response, and
remediation, with more than two million endpoints installed globally. As a
trusted security advisor to more than one-third of the Fortune 100, Mandiant's
experts have responded to hundreds of high-profile security incidents and bring
deep security and incident response expertise to FireEye. The combined
organization unifies the critical components required to provide
state-of-the-art cyber security: the most complete library of actionable threat
intelligence on advanced threats and a product suite that can apply that
intelligence to detect and prevent attacks on both the network and on

This powerful combination of security products and threat intelligence is
enhanced by expert security consulting, incident response, and managed security
services enabling organizations to improve their security posture and resolve
security incidents whenever and wherever they arise. 

'Organizations today are faced with knitting together a patchwork of point
products and services to protect their assets from advanced threats,' said
David DeWalt, chairman of the board and chief executive officer of FireEye.
'Together, the size and global reach of FireEye and Mandiant will enable us to
innovate faster, create a more comprehensive solution, and deliver it to
organizations around the world at a pace that is unmatched by other security

Mandiant expands FireEye's ability to stop advanced attacks at the earliest
phases of the attack life cycle with: 

  -- Endpoint Threat Detection, Response, and Remediation Products
     Mandiant pioneered and continues to lead the industry for endpoint-based
     advanced threat detection and response. Mandiant's endpoint products, which
     are already integrated with the FireEye platform, enable security teams to
     make faster, more accurate decisions about potential security incidents
     while eliminating blind spots by connecting the dots with the FireEye
     network-based threat detection and prevention platform.
  -- Advanced Threat Intelligence
     Mandiant brings unrivaled depth in intelligence on next-generation attacks,
     which is continually gathered from ongoing monitoring of more than two
     million endpoints and by incident response and remediation teams who serve
     on the front lines combating the most advanced attacks. When this depth of
     threat intelligence is paired with the breadth of the FireEye real-time
     threat intelligence gathered from more than two million virtual machines,
     organizations will have unmatched detection and contextual information
     about attempted attacks, including the level of risk, the identity of the
     attackers, and the intended target of the attack.
  -- Incident Response and Security Consulting Services
     Endpoint protection, security incident response, and remediation have been
     Mandiant's primary focus and expertise since its inception. Mandiant's
     extensive team of highly skilled incident response experts has performed
     hundreds of incident response investigations across all industries and at
     organizations of all sizes. In addition, Mandiant brings its Mandiant
     Managed Defense monitoring service to FireEye. The addition of these skills
     and expertise significantly expand the ability of FireEye to offer
     value-added services on the FireEye Oculus platform.

Mandiant has been a strategic alliance partner of FireEye since April 2012. The
combination of the two companies is a natural extension of this partnership and
their integrated product offering, which both companies announced in February

Kevin Mandia, Mandiant's founder and chief executive officer prior to the
acquisition, has been appointed by the FireEye board of directors to the
position of senior vice president and chief operating officer of FireEye. Mr.
Mandia has been profiled on the cover of Fortune magazine and recognized by
Foreign Policy magazine as one of the 100 leading global thinkers of 2013. 

'The combination of FireEye and Mandiant will deliver end-to-end protection and
meaningful value to customers,' said Mr. Mandia. 'By joining FireEye and
Mandiant, we will be able to deliver fully integrated products and services
that help organizations protect themselves from attacks. The combined product
portfolio will cover all the major attack points within an organization, and
our expanded services capacity will allow us to quickly pivot to incident
response when necessary to reduce the impact of security breaches.' 

Mandiant will be integrated with FireEye to provide global services and cloud
solutions, including security consulting, incident response, and managed
services. Mandiant's endpoint threat detection and response products will be
incorporated as a core element of the FireEye Oculus platform. 

Financial Terms of the Transaction

The acquisition was approved by the shareholders of Mandiant and the boards of
directors of both companies. Under the terms of the merger agreement, FireEye
will issue an aggregate of 21.5 million shares and options to purchase shares
of FireEye stock and pay approximately $106.5 million of net cash in the
transaction to the former Mandiant security holders. In addition, FireEye
granted certain performance-based retention equity incentives. 

Webcast and Conference Call Information

FireEye will host a live webcast with slides to discuss the transaction on
January 2, 2014 at 2:00 P.M. Pacific time (5:00 P.M. Eastern time). The webcast
may be accessed from the Investor Relations section of the FireEye website at
http://investors.FireEye.com. Additionally, interested parties may access an
audio-only conference call by dialing toll free 1-877-312-5521 within the U.S.,
or 1-678-894-3048 from international locations. 

The archived webcast will be available via the Investor Relations section of
the FireEye website at http://investors.FireEye.com. A conference call replay
will be available approximately one hour after the conclusion of the event on
January 2 through January 9, 2014 by dialing toll free 1-855-859-2056 within
the U.S. or 1-404-537-3406 from international locations, and entering
conference code 30005211. 

About FireEye, Inc.

FireEye has invented a purpose-built, virtual machine-based security platform
that provides real-time threat protection to enterprises and governments
worldwide against the next generation of cyber attacks. These highly
sophisticated cyber attacks easily circumvent traditional signature-based
defenses, such as next-generation firewalls, IPS, anti-virus, and gateways. The
FireEye Threat Prevention Platform provides real-time, dynamic threat
protection without the use of signatures to protect an organization across the
primary threat vectors and across the different stages of an attack life cycle.
The core of the FireEye platform is a virtual execution engine, complemented by
dynamic threat intelligence, to identify and block cyber attacks in real time.
FireEye has over 1,500 customers across more than 40 countries, including over
100 of the Fortune 500. 

About Mandiant

Mandiant was founded in 2004. The company was named 'Best Security Company' by
SC Magazine in 2012 and 2013 and counts more than 33 percent of the Fortune 100
as clients. Bloomberg BusinessWeek profiled Mandiant as the 'go-to responder
for cyber-espionage attacks', and the company received widespread coverage in
February 2013 for its report, 'APT1: Exposing One of China's Cyber Espionage
Units', which traced attacks on 141 companies to Unit 61398 of the People's
Liberation Army, supporting allegations of China's involvement in
state-sponsored espionage. 

Forward-Looking Statements

This press release contains forward-looking statements about the expectations,
beliefs, plans, intentions and strategies of FireEye relating to FireEye's
acquisition of Mandiant. Such forward-looking statements include statements
regarding future product offerings; expected benefits to FireEye, Mandiant and
their respective customers; expected financial impact of the acquisition on
FireEye; and plans regarding Mandiant and Mandiant personnel. These statements
reflect the current beliefs of FireEye and are based on current information
available to us as of the date hereof, and we do not assume any obligation to
update the forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made. The ability of
FireEye to achieve these business objectives involves many risks and
uncertainties that could cause actual outcomes and results to differ materially
and adversely from those expressed in any forward-looking statements. These
risks and uncertainties include the failure to achieve expected synergies and
efficiencies of operations between FireEye and Mandiant; the ability of FireEye
and Mandiant to successfully integrate their respective market opportunities,
technology, products, personnel and operations; the failure to timely develop
and achieve market acceptance of combined products and services; the potential
impact on the business of Mandiant as a result of the acquisition; the loss of
any Mandiant customers; the ability to coordinate strategy and resources
between FireEye and Mandiant; the ability of FireEye and Mandiant to retain and
motivate key employees of Mandiant; general economic conditions; as well as
those risks and uncertainties included under the captions 'Risk Factors' and
'Management's Discussion and Analysis of Financial Condition and Results of
Operations,' in our Form 10-Q filed with the Securities and Exchange Commission
on November 14, 2013 for the quarter ended September 30, 2013, which is
available on the Investor Relations section of our website at
investors.FireEye.com and on the SEC website at www.sec.gov. 

(c) 2014 FireEye, Inc. All rights reserved. FireEye, Multi-Vector Virtual
Execution and Oculus are registered trademarks or trademarks of FireEye, Inc.
in the United States and other countries. All other brands, products, or
service names are or may be trademarks or service marks of their respective

         Investor Contact
         Kate Patterson
         FireEye, Inc.
         Media Contact
         Vitor De Souza
         FireEye, Inc.
News Source: NASDAQ OMX

End of Corporate News


02.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English        
Company:     FireEye        
             United States  
ISIN:        US31816Q1013   
End of News    DGAP News-Service  
246782 02.01.2014