FireEye Inc. said Thursday it has acquired Mandiant Corp., the firm that linked years of cyberattacks against U.S. companies to a secret Chinese military unit.
FireEye said that the purchase of privately held Mandiant would increase its ability to stop attacks in their early stages.The company valued the deal at nearly $1 billion. FireEye said it would buy 21.5 million shares and options of its stock — worth about $884 million at Thursday's closing price — and pay $106.5 million in cash to former Mandiant investors.
FireEye makes computer-security software. It had a successful initial public offering of stock in September, with the shares nearly doubling in price on the first day of trading. The Milpitas, Calif.-based company said its customers include more than 100 of the Fortune 500 corporations.
Virginia-based Mandiant drew attention last February when it issued a detailed reporttracing attacks on 141 companies to a hacking unit in Shanghai that experts believe is part of the Chinese Army's cyber command. The Chinese government denied the firm's accusations, but the incident helped the company burnish a reputation in cybersecurity.
Mandiant's clients include more than one-third of the largest 100 corporations, according to FireEye.
Before the deal was announced, shares of FireEye fell $2.48, or 5.7 percent, to close at $41.13, but they were soaring $9.12, or 22.2 percent, to $50.25 in after-hours trading.
FireEye also said that fourth-quarter revenue would be between $55 million and $57 million, higher than the company's earlier forecast of $52 million to $54 million. Analysts surveyed by FactSet expected $53.4 million. The company is scheduled to report results after the market closes on Feb. 11.
Including the Mandiant acquisition, FireEye expects 2014 revenue to be $400 million to $410 million.