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.