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FireEye builds security dream team, buys Mandiant in $1bn deal

Security firm FireEye has purchased fellow security company Mandiant, which specialises in responding to network breaches, for $1.05 billion (£640 million).

The news led to FireEye's share prices increasing by 24 per cent in the hours following the announcement. The merger represents one of the biggest acquisitions in the recent history of cyber security.

Mandiant is "the leading provider of advanced endpoint security products and security incident response management solutions." The company rose to prominence in 2012 after it played a key role in exposing a team of Chinese hackers responsible for breaching the networks of the New York Times over a number of months, stealing the passwords of reporters and infiltrating systems.

Mandiant, which was hired by the newspaper to investigate the breaches, found that the hackers were using techniques previously associated with the Chinese military, and even traced the attacks back to a military base in Shanghai (opens in new tab).

The two companies entered into a technology development agreement in 2013, and claim that they agreed to the acquisition on 30 December. However, they only made the announcement on 2 January.

David DeWalt, chairman of the board and chief executive officer of FireEye said in a statement:

"Organizations today are faced with knitting together a patchwork of point products and services to protect their assets from advanced threats," said David DeWalt, chairman of the board and chief executive officer of FireEye, in a statement.

"Together, the size and global reach of FireEye and Mandiant will enable us to innovate faster, create a more comprehensive solution, and deliver it to organizations around the world at a pace that is unmatched by other security vendors."

Mandiant's founder and former CEO has been appointed as the chief operating officer (COO) of FireEye.

So where did FireEye get that kind of capital? That would be their IPO, in September, in which they floated the company for $2.3 billion (opens in new tab) (£1.45 billion).

Paul Cooper
Paul Cooper

Paul has worked as an archivist, editor and journalist, and has a PhD in the cultural and literary significance of ruins. His writing has appeared in the New York Times, The BBC, The Atlantic, National Geographic, and Discover Magazine, and he was previously Staff Writer and Journalist at ITProPortal.