(Reuters) -U.S. cybersecurity agency FireEye Inc mentioned on Wednesday it could promote its merchandise enterprise, together with the FireEye title, to a consortium led by private-equity agency Symphony Know-how Group for $1.2 billion in money.
The deal will separate FireEye’s community, electronic mail and cloud safety merchandise from its cyber forensics unit, Mandiant Options.
The deal is predicted to shut by the tip of the fourth quarter, the corporate mentioned.
FireEye, one of many largest cybersecurity corporations in america, additionally mentioned its board had authorised a share buyback program of as much as $500 million.
The corporate initially acquired Mandiant, based by Kevin Mandia, who grew to become FireEye’s chief government, for about $1 billion in early 2014. Mandiant will return as an unbiased firm, targeted on cyber-incident response and cybersecurity testing, and shall be publicly traded following the deal.
“With the separation, you get simplicity, you get focus. Collectively we’re in quite a lot of markets,” Mandia mentioned in an interview with Reuters concerning the sale. “Plenty of it actually was useful resource constraint.”
“FireEye can’t do every part,” he added.
The acquisition of FireEye marks a serious turning level within the quickly evolving U.S. cybersecurity market. The nonetheless nascent trade has seen quite a few firms purchased and merged in simply the previous a number of years.
In March, Symphony additionally bought McAfee’s enterprise enterprise division for about $4 billion. Final 12 months, chipmaker Broadcom Inc bought the enterprise enterprise of Symantec, one other main trade participant, for about $10.7 billion.
FireEye is likely one of the best-known corporations within the trade as a result of it has dealt with lots of the most high-profile hacking incidents in U.S. historical past.
Reporting by Christopher Bing; Further reporting by Eva Mathews in Bengaluru; Enhancing by Anil D’Silva and Peter Cooney