The FireEye logo will appear outside the company’s offices in Milpitas, California on December 29, 2014.
Beck Diefenbach | Reuters
FireEye announced Wednesday that it was selling its product business, including the FireEye name, to a consortium led by private equity firm Symphony Technology Group for $ 1.2 billion in cash.
The US cybersecurity firm said the sale will separate Mandiant Solutions, its cyber forensics unit, from its cloud security, networking and email products.
FireEye’s stocks were relatively flat after hours. The company said the deal is expected to close by the end of the fourth quarter.
FireEye was the subject of a cyber attack in December last year that it believes was government sponsored. Microsoft in February praised the company’s transparency of the breach by helping it discover that it was also under attack.
FireEye CEO Kevin Mandia said the sale will help the company grow its Mandiant Solutions business.
“Upon graduation, we will be able to focus solely on scaling our frontline intelligence and expertise through the Mandiant Advantage platform, while the FireEye product business will be able to invest in its cloud-first Prioritize the security product portfolio, ”continues Mandia.
The sale is just the latest example of a high-dollar tech deal going to private equity.
With the exception of special-purpose vehicles, seven of the 12 largest technology acquisitions in the US in 2021 were made by private equity firms, according to FactSet data.
In Wednesday’s announcement, FireEye also said its board of directors had approved a share buyback program of up to $ 500 million.