FireEye, Inc. announced on Wednesday, that it had acquired iSIGHT Partners in a deal that closed on Jan. 14. The merger is said to boost FireEye's cyber intelligence capabilities to a whole new level.
The deal will combine two of the world's leading cybersecurity firms. FireEye is known for its Mandiant forensics unit, which aids companies to investigate cyber attacks. Meanwhile, iSIGHT has been recognized to uncover large cyber campaigns from Russia, Iran and other countries.
FireEye's chief executive officer David DeWalt says the merger increases the company's lead with a promise that none in the industry can match.
Now, clients of both firms will be able to enjoy having low business risks via higher fidelity alerts and strategic insight for proactive preparations against threats.
FireEye provides real-time threat protection against advanced cyber attacks while iSIGHT tracks threat development.
FireEye's chief financial officer Michael Berry believes that higher quality alerts and the idea of being able to prioritize the most critical attacks with a touch of fingertip makes them a vital part of their clients' security framework.
"By delivering nation-state grade threat intelligence to commercial customers, we create new cross-sell opportunities that will drive new subscription revenue and increasing renewal value for existing customers," Berry says.
Under the terms of the agreement, FireEye will pay about $200 million for 100 percent of the outstanding shares of former iSIGHT shareholders. The said price, which will be paid in cash, is still subject to various adjustments with respect to transaction-related costs.
The former iSIGHT shareholders may also earn an additional $75 million in equity and cash if the merger will receive threat intelligence bookings on or before the second quarter of 2018.
The agreement is anticipated to slightly increase FireEye's income in 2016. As of Dec. 31, 2015, the company's balance sheet amounted to $1.7 billion in cash, equivalents and short-term investments.
FireEye currently has 4,000 clients across 67 countries. Among these clients, more than 650 are included in Forbes Global 2000.
iSIGHT has 350 staff members that includes over 250 cyber intelligence experts in 17 countries and speaking 29 languages.
