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FireEye, Mandiant Split Apart in $1.2B Private Equity Deal

FireEye (NASDAQ: FEYE) on Wednesday announced plans to sell its products business, including the FireEye name, as part of a $1.2 billion transaction that splits off the Mandiant Solutions unit from the company’s endpoint protection and cloud security products.

According to FireEye, the cloud security, network and email product side of the house will be sold off in a $1.2 billion all-cash transaction to Symphony Technology Group, the private equity firm that also owns RSA Security and McAfee Enterprise.

The deal is expected to close later this year.

Mandiant Solutions, which merged with FireEye in a blockbuster 2013 deal, will focus on providing “controls-agnostic software and services” independent of FireEye, while the products business will become a standalone entity within the Symphony Technology Group portfolio.

FireEye said the deal enables both organizations “to accelerate growth investments, pursue new go-to-market pathways, and focus innovation on their respective solutions.” 

“We believe this separation will unlock our high-growth Mandiant Solutions business and allow both organizations to better serve customers,” FireEye chief executive Kevin Mandia said in a statement. 

“After closing, we will be able to concentrate exclusively on scaling our intelligence and frontline expertise through the Mandiant Advantage platform, while the FireEye Products business will be able to prioritize investment on its cloud-first security product portfolio.”

FireEye also announced that its Board of Directors has approved a share repurchase program for up to $500 million of outstanding FireEye common stock.

Related: FireEye Builds Security Powerhouse With $1B Mandiant Deal

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Ryan Naraine is Editor-at-Large at SecurityWeek and host of the popular Security Conversations podcast series. He is a journalist and cybersecurity strategist with more than 20 years experience covering IT security and technology trends. Ryan has built security engagement programs at major global brands, including Intel Corp., Bishop Fox and Kaspersky GReAT. He is a co-founder of Threatpost and the global SAS conference series. Ryan's career as a journalist includes bylines at major technology publications including Ziff Davis eWEEK, CBS Interactive's ZDNet, PCMag and PC World. Ryan is a director of the Security Tinkerers non-profit, and a regular speaker at security conferences around the world. Follow Ryan on Twitter @ryanaraine.