FireEye Selling Products Biz And Name For $1.2 Billion Cash

(RTTNews) - Shares of FireEye, Inc. (FEYE) slipped over 4% in extended trading session Wednesday after the cybersecurity company announced that it is selling its products business, including the FireEye name, to a consortium led by private-equity firm Symphony Technology Group for $1.2 billion in cash.

FireEye said the deal will split its network, email, endpoint, and cloud security products from Mandiant's controls-agnostic software and services. The deal is expected to close by the end of fourth quarter 2021.

"We believe this separation will unlock our high-growth Mandiant Solutions business and allow both organizations to better serve customers," said FireEye Chief Executive Officer Kevin Mandia. "After closing, we will be able to concentrate exclusively on scaling our intelligence and frontline expertise through the Mandiant Advantage platform."

Simultaneously, FireEye announced that its board has approved a $500 million share-repurchase plan.

Last year, FireEye said that it had been hacked, which the company says is likely a state-sponsored attack. The hacking tools used to test the defenses of its clients were stolen in the attack.

FEYE closed Wednesday's trading at $22.53, up $0.20 or 0.90%, on the Nasdaq. The stock, however, slipped $0.98 or 4.35%, in the after-hours trade.