. .
FireEye Inc. Shares rose Thursday after the cybersecurity firm said it received a significant capital investment from a group led by Blackstone, which it uses to help fund the acquisition of Respond Software..
Eye of fire
Phi,
She said a group led by Blackstone
BX,
1. 43%
And ClearSky Venture Capital Company made a strategic investment in the company by purchasing $ 400 million in Convertible Preferred Shares that can be converted into a FireEye common stock at $ 18 a share.
Also on Thursday, FireEye announced that it had acquired Respond Software for $ 186 million in cash and shares.. Mountain View, California. A cybersecurity investigation automation company introduces FireEye to the Respond Analyst XDR Engine, which it claims, Respond, on its website, “uses artificial intelligence and machine learning to group data together from security controls, eliminating unimportant events and revealing the events they did.
FireEye said the deal expired on Wednesday. The acquisition is FireEye’s second in the year after it bought Cloudvisory in January for an undisclosed sum.
FireEye said it is using the proceeds from Blackstone’s investment to help fund the acquisition of Respond, as well as « to support strategic growth initiatives. » . . . In addition to increasing investment to accelerate the growth of the company’s cloud services, platform, and managed services portfolio. .
In an interview, FireEye CEO Kevin Mandia told MarketWatch that his relationship with Blackstone goes back decades.. ClearSky was founded by Jay Leek, who used to be Blackstone’s chief information security officer.
“When you look at what we’re trying to do, our story and vision really resonates with Blackstone and Jay Lake,” Mandia said..
As FireEye evolved from a hardware provider to a cloud service, “We filled a loophole by gaining Respond very well,” Mandia said.
Back in October, FireEye reported record quarterly results for what Mandia described as « an escalation in cyber attacks. ».
At Thursday’s close, FireEye shares are down 14% for the year, while the ETFMG Prime Cybersecurity ETF
take ,
1. 31%
The S&P 500 rose 17%
SPX,
0. 39%
It is up 11%, and the high-tech Nasdaq Composite Index
COMP,
0. 87%
Increased by 33%.
Wallace Whitkosky came to MarketWatch from the Associated Press in New York, where he was a business reporter specializing in pharmaceutical companies.. He has previously worked in commercial publications covering the pharmaceutical and medical device industry since 1998. Based in San Francisco, its focus is on U. s. Stocks. Follow Wali on Twitter: @wmwitkowski.
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FireEye, The Blackstone Group, NASDAQ: FEYE, Mandiant, Respond Software, Computer Security, Stock
World News – US – FireEye shares up more than 10% on Blackstone’s investment, Respond software acquisition
Ref: https://www.marketwatch.com
