The deal creates the most advanced and comprehensive cyber threat intelligence operation in the world. FireEye, Inc. has acquired iSIGHT Partners, a leading provider of cyber threat intelligence for global enterprises, for $200 million in cash. The deal closed on January 14, 2016.
The deal will combine two of the world’s leading cybersecurity firms. FireEye, which is known for its highly innovative Mandiant forensic unit, provides real-time threat protection against all types of cyberattacks. While, iSIGHT, which is known for uncovering large cyber campaigns from Russia, Iran, North Korea, and other rogue countries, tracks threat development.
David DeWalt, CEO and Chairman of the Board at FireEye, said in a statement: “This acquisition extends FireEye’s intelligence lead with an offering no one else in the industry can match,” and also added this: “The biggest mistake most people make is thinking threat intelligence is a collection of virus definitions in a shared database. Forward-looking security organizations – from governments to the private sector – know threat intelligence is the key to establishing a robust security posture tuned for the threats targeting each organization. As the cyber operations become integrated with physical, geopolitical and competitive conflict, an intelligence-led approach to security will be key to detecting the most sophisticated threats and responding to them quickly and effectively.”
Both companies are leading the industry towards an intelligence-led security model that provides organizations with the comprehensive strategic threat insights needed to combat increasingly sophisticated and persistent attacks. An intelligence-led security model offers a deeper and broader picture of cyberattacks (including attack methodologies and techniques), allowing organizations and companies to more effectively detect, respond to and even predict cybersecurity breaches.
Clients from both companies will benefit from this massive merger, FireEye’s existing customer base will see immediate value in their existing subscriptions through increased protection from the iSIGHT intelligence network.
Based in Dallas, Texas, iSIGHT Partners has been recognized as a global leader in cyber threat intelligence. Through its well-established cyber intelligence team (which is made up of over 250 cyber intelligence experts in 17 different countries), the iSIGHT Intelligence team monitors and mines global threat development. It focuses on analyzing and understanding the global threat ecosystem, which includes the treat sources and the methodologies they employ, and partners with its clients’ security team to empower an intelligence-led cybersecurity strategy that connects intelligence directly to their business.
FireEye CEO David DeWalt says the deal increases the company’s lead with a promise that none in the industry can match. This will boost FireEye’s cyber intelligence capabilities to a whole new level and create the most advanced and comprehensive cyber threat intelligence operation in the world.
Under the terms of the agreement, FireEye will pay about approximately $200 million (which is still subject to various adjustments with respect to transaction-related costs) in cash to the former iSIGHT shareholders for 100 percent of their outstanding shares of iSIGHT. In addition to $200 million, the former iSIGHT shareholders will have the opportunity to earn an additional amount of $75 million in cash and equity upon the achievement of a threat intelligence bookings target on or before the end of FireEye’s second quarter of 2018.
Founded in 2004 and based in Milpitas, California, FireEye is a publicly-traded US-based network security company that provides automated threat forensics and cyber intelligence solutions against advanced cyber threats. The company provides a combination of expertise, professionalism, and targeted, relevant intelligence that is unmatched in the security industry. Its threat prevention platforms include Network, Email, Endpoint, Content, Mobile, Analytics, and Forensics.
Currently, the company has 4,000 clients across 67 countries, including more than 650 of the Forbes Global 2000 companies. FireEye’s major investors interlude Sequoia Capital, Norwest Venture Partners, Icon Ventures, SVB Capital, DAG Ventures, In-Q-Tel, and network security firm Juniper Networks.