FireEye (FEYE) Rockets on Mandiant Acquisition

Shares of the FireEye Inc. (FEYE) were trading at $51 per share, up +9.87 or + 24 percent in pre-market trading on Friday, after the company announced late Thursday it would be taking over rival Mandiant Corp. FireEye stock closed down -2.48 or -5.69 percent to $41.13 per share in Thursdayâ s regular trading session. The deal for privately held Mandiant Corp is worth approximately $1.05 and will be done with a combination of FireEye stock, stock options and cash.

Both companies specialize in cyber-security, with Mandiant best known for exposing Chinese hackers.
Milpitas, California based FireEye was founded in 2004 and has been instrumental in taking down some of the worldâ s largest botnets. The companyâ s main product is a Malware Protection System for Internet, email and file security, as well as malware analysis. FireEyeâ s more than 1,500 customers in 40 countries include over 60 U.S. federal agencies and several state universities and city colleges. FireEye had its initial public offering on September 20th, originally pricing the offering at $12-$14, the price was finalized at $20 per share with the company selling 15.2 million shares and raising $303.5 million. FireEye stock made a high of $44.89 on its first day before settling at $36 per share. Alexandria, Virginia based Mandiant Corp. specializes in malware detection and is a privately held company with about 500 customers, generating $100 million in sales in 2013. Mandiantâ s technology, which FireEye plans to integrate, imbeds network sensors and malware signatures into its products. The acquisition will be made through an issuance of 21.5 million FireEye shares, along with options currently valued at $900 million. In addition, the company said it will also pay out approximately $106.5 million in cash to Mandiant investors. Kevin Mandia, founder of Mandiant said in a conference call that, â

Published on Jan 3, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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