The News Scroll 03 June 2021  Last Updated at 5:33 pm | Source: PTI

FireEye to sell its products biz to Symphony Technology Group for $1.2bn

FireEye to sell its products biz to Symphony Technology Group for $1.2bn
New Delhi, Jun 3 (PTI) FireEye, Inc on Thursday said it will sell its FireEye Products business, including the FireEye name, to a consortium led by Symphony Technology Group (STG) in an all-cash transaction for USD 1.2 billion.

The transaction will separate FireEye''s network, email, endpoint, and cloud security products, along with the related security management and orchestration platform from Mandiant''s controls-agnostic software and services, a statement said.

This will enable both organisations to accelerate growth investments, pursue new go-to-market pathways, and focus innovation on their respective solutions, it added.

The FireEye Products business and Mandiant Solutions will continue to operate as a single entity until the transaction closes, allowing management and STG to develop a successful transition of the FireEye Products business to a standalone entity within the STG portfolio, it said.

The transaction - for USD 1.2 billion (before taxes and transaction-related expenses) - is expected to close by the end of the fourth quarter of 2021, subject to customary regulatory approvals and closing conditions.

FireEye said the company is committed to building and preserving a strong partnership and at closing, will enter into agreements designed to maximise the benefits for joint customers.

These agreements include a reseller and market cooperation agreement, a strategic collaboration agreement, and a transition services agreement.

Customers and partners can expect to receive the full benefit of these agreements as the companies share technology, telemetry, threat intelligence, and expertise, it added.

"We believe this separation will unlock our high-growth Mandiant Solutions business and allow both organisations to better serve customers. 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 prioritise investment on its cloud-first security product portfolio,” FireEye Chief Executive Officer Kevin Mandia said.

STG''s focus on fueling innovative market leaders in software and cybersecurity makes them an ideal partner for FireEye Products, he added.

"We look forward to our relationship and collaboration on threat intelligence and expertise," Mandia said.

STG Managing Partner William Chisholm said the company is impressed by the FireEye Products business and the mission-critical role it plays for its customers.

“We believe that there is an enormous untapped opportunity for the business that we are excited to crystallise by leveraging our significant security software sector experience and our market-leading carve-out expertise,” he added.

Goldman Sachs & Co. LLC is serving as a financial advisor, and Wilson Sonsini Goodrich & Rosati P.C. is acting as legal advisor to FireEye.

UBS Investment Bank and Jefferies LLC are acting as financial advisors, and Paul Hastings LLP is acting as legal advisor to STG. UBS Investment Bank and Jefferies Finance LLC are providing financing for the transaction.

FireEye has also announced that its board of directors has approved a share repurchase programme for up to USD 500 million of outstanding FireEye common stock. PTI SR SHW SHW

Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI
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