US cyber security firm FireEye said it would sell its products business, including the FireEye name, to a consortium led by private-equity firm Symphony Technology Group for US$1.2 billion (A$1.55 billion) in cash.
The deal will separate FireEye’s network, email and cloud security products from its cyber forensics unit, Mandiant Solutions.
The Milpitas, Calif.-based platform security vendor said its high-growth threat intelligence and incident response services business will continue to operate as a publicly traded business under the Mandiant Solutions banner. In addition to purchasing the company’s network, email, endpoint and cloud security portfolio, private equity firm STG also acquired the FireEye name.
“After closing, we will be able to concentrate exclusively on scaling our intelligence and frontline expertise through the Mandiant Advantage program, while the FireEye Products business will be able to prioritize investment on its cloud-first security product portfolio,” FireEye CEO Kevin Mandia said in a statement.
“We are extremely impressed by the FireEye Products business and the mission critical role it plays for its customers,” STG Managing Partner William Chisholm said in a statement. “We believe there is enormous untapped opportunity for the business that we are excited to crystalize by leveraging our significant security software sector expertise and our market leading carve-out expertise.”
The deal is expected to close by the end of the fourth quarter, the company said.
FireEye, one of the largest cyber security firms in the United States, also said its board had approved a share buyback program of up to US$500 million.