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FireEye acquiring endpoint security firm, ups guidance

  • FireEye (FEYE) has acquired Mandiant, a top provider of endpoint security software (protects against threats from remote devices accessing a network), for 21.5M shares (current value of $884M), $106.5M in net cash, and performance incentives. (PR)
  • Mandiant claims over 1/3 of the Fortune 100 among its customers, and has had its software installed on 2M+ endpoints. The company already has a partnership with FireEye - Mandiant's software can be used to process and investigate security events detected by FireEye's threat-prevention hardware.
  • In addition to endpoint security products, Mandiant's offerings include network security software, incident response services, and a subscription-based service that provides information and analysis about security threats.
  • Mandiant competes against Symantec (SYMC), which offers endpoint security and incident response solutions of its own. The acquisition broadens the scope of FireEye's offerings for a fast-growing and very competitive cybersecurity market.
  • In tandem with the acquisition (closed at the end of Q4), FireEye is upping its Q4 revenue guidance to $55M-$57M from $52-$54M (consensus is at $53.6M). Billings are now expected to total $95M-$100M, up from a prior $82M-$86M.
  • With Mandiant in tow, FireEye now expects 2014 revenue of $400M-$410M, up from prior guidance of $240M-$250M. 2014 billings guidance has been raised to $540M-$560M from $350M-$370M.
  • FireEye's strong post-IPO performance and lofty multiples may have helped motivate the company to make a big strategic purchase. Shares are halted until 4:35PM ET. CC at 5PM.
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