Threat protection vendor FireEye announced on Thursday that it had acquired security incident response provider Mandiant in a cash and stock deal worth more than $1 billion based on the current value of FireEye shares.
The acquisition, which closed on Monday but only was publicly announced after the markets closed on Thursday, was one of the biggest security deals of 2013. FireEye will pay Mandiant shareholders $106.5 million in cash and 21.5 million shares and options.
Publicly traded FireEye, which is best known for detecting and stopping persistent threats, has yet to turn a profit. Mandiant, which is best known for its forensics investigations aimed at rooting out attackers, had $100 million in revenue in 2012, up more than 76 percent from the previous year.
“The combination of FireEye and Mandiant will deliver end-to-end protection and meaningful value to customers,” said Kevin Mandia, Mandiant’s founder and chief executive officer prior to the acquisition, said in a statement. “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.”
Under the terms of the deal, Mandiant will become an operating subsidiary of FireEye and Mandia will become senior vice president and chief operating officer of FireEye.