FireEye buys firm that tied cyberattacks to China

Jan 03, 2014

(AP)—FireEye Inc. said Thursday it has acquired Mandiant Corp., the firm that linked years of cyberattacks against U.S. companies to a secret Chinese military unit.

FireEye said that the purchase of privately held Mandiant would increase its ability to stop attacks in their early stages.

The company valued the deal at nearly $1 billion. FireEye said it would buy 21.5 million shares and options of its stock—worth about $884 million at Thursday's closing price—and pay $106.5 million in cash to former Mandiant investors.

FireEye makes computer-security software. It had a successful of stock in September, with the shares nearly doubling in price on the first day of trading. The Milpitas, California-based company said its customers include more than 100 of the Fortune 500 corporations.

Virginia-based Mandiant drew attention last February when it issued a detailed report tracing attacks on 141 companies to a hacking unit in Shanghai that experts believe is part of the Chinese Army's cyber command. The Chinese government denied the firm's accusations, but the incident helped the company burnish a reputation in cybersecurity.

Mandiant's clients include more than one-third of the largest 100 corporations, according to FireEye.

Before the deal was announced, shares of FireEye fell $2.48, or 5.7 percent, to close at $41.13, but they were soaring $9.12, or 22.2 percent, to $50.25 in after-hours trading.

FireEye also said that fourth-quarter revenue would be between $55 million and $57 million, higher than the company's earlier forecast of $52 million to $54 million. Analysts surveyed by FactSet expected $53.4 million. The company is scheduled to report results after the market closes on Feb. 11.

Including the Mandiant acquisition, FireEye expects 2014 revenue to be $400 million to $410 million.

Explore further: Dealertrack to buy Dealer.com for about $1 billion

3.3 /5 (3 votes)
add to favorites email to friend print save as pdf

Related Stories

Hackers who hit US media are back: security firm

Aug 12, 2013

The hackers who penetrated the computer network of The New York Times last year have resurfaced with an attack on "an organization involved in shaping economic policy," experts warned Monday.

Pandora posts 3Q loss, revenue up 50 percent

Nov 21, 2013

Shares of Pandora Media Inc. are dropping after the Internet radio leader's outlook for the three months through January was mostly short of Wall Street's forecast.

A look at Mandiant, allegations on China hacking

Feb 19, 2013

(AP)—A private technology security firm on Tuesday described in extraordinary detail efforts it blamed on a Chinese military unit to hack into 141 businesses, mostly inside the U.S., and steal commercial secrets. China ...

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

Osiris1
not rated yet Jan 03, 2014
Hope Fire Eye is not a Chinese front company, formed with one and only one purpose, to seek out, find, bring back to China by any means, and prosecute those who found about the Chinese hackers............for 'anti China activities'. Hey...just formed last September and now it is on a buying spree with billions of bucks to throw around..Who is kidding who?