The FireEye logo is visible outside the company’s Milpitas, California office on December 29, 2014.
Beck Diefenbach | Reuters
FireEye said Wednesday it was selling its product manufacturing 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 company said the deal would separate its cyber forensics division Mandiant Solutions from its cloud security, network and email products.
FireEye shares were relatively unchanged after the close. The company said the deal will be closed by the end of the fourth quarter.
FireEye was hit by a cyberattack in December last year that it believes was government sponsored. Microsoft in February enrolled the company’s transparency about a breach to help it discover that it has also been attacked.
FireEye CEO Kevin Mandia said the sale would help him grow Mandiant Solutions’ business.
“Once closed, we will be able to focus solely on scaling our intelligence and excellence through the Mandiant Advantage platform, while the FireEye product business can prioritize investments in its cloud-first security portfolio,” Mandia continued.
The sale is just the latest example of a large-scale technology deal involving private equity.
Except for special purpose acquisition companies, seven of the 12 largest technology acquisitions According to FactSet data, there were private equity firms held in the US in 2021.
FireEye also said in a message Wednesday that its board of directors has approved a share buyback program for up to $ 500 million.