American cyber-security and malware protection firm FireEye has announced the acquisition of iSight Partners, the media reported on Wednesday.
The move, valued at $200 million, shows the cyber-security market consolidating, as values of security firms drop, Reuters writes in its report.
“This acquisition extends FireEye’s intelligence lead with an offering no one else in the industry can match,” David DeWalt, FireEye CEO and chairman of the board, commented in a statement.
Following a number of high-profile cyber-attacks which occurred in the past year, the value of cyber-security and cyber-forensics firms spiked, but now investors consider them overpriced.
“Many private tech companies in other sectors have also seen steep drops in valuation in recent months,” Reuters claims.
The deal was closed on January 14 and, if business meets certain sales by mid-2018, shareholders can expect an extra $75 million in cash and stock.
iSight planned an IPO in late 2016, and was looking to raise at least $1 billion, but with this deal, it seems it got a bit ahead of itself.
The move is considered by the media as a merger of the world’s most prominent cyber firms. iSight has offices in 17 countries, where 250 experts track 16,000 adversaries. That’s about 20 times the number FireEye currently follows, Reuters adds.
iSight Chief Executive John Watters told Reuters in an interview that he decided to sell after the market for funding became more difficult. "Investors are more discerning," Watters said. "I thought our ability to execute alone was risky and would not give us the full leverage of what we could achieve through a merger."