FireEye, Inc. (NASDAQ: FEYE), an intelligence-led security company, acquired Verodin, a provider of solutions for validating the effectiveness of cyber security controls.
The transaction is valued at approximately $250m in cash and stock, net of acquired net cash and excluding assumed unvested options, based on the closing price of FireEye’s common stock on May 24, 2019.
The combination is expected to be accretive to revenue, cash flow from operations and non-GAAP operating income in 2020, and add approximately $20m to billings in 2019 and more than $70m to billings in 2020.
The Verodin Security Instrumentation Platform adds new capabilities to the FireEye portfolio by identifying gaps in security effectiveness due to equipment misconfiguration, changes in the IT environment, evolving attacker tactics, and more.
Equipped with FireEye frontline intelligence, the Verodin platform will measure and test security environments against both known and newly discovered threats, empowering organizations to identify risks in their security controls before a breach occurs, and rapidly adapt their defenses to the evolving threat landscape.
Verodin will integrate with FireEye® Helix™ security orchestration capabilities to allow customers to prioritize and automate continuous improvement of security controls. Customers will also be able to implement Verodin cyber security measurement and validation solutions “as-a-service” through the FireEye Managed Defense service and as an Expertise On Demand automated service.
Led by Chris Key, co-founder and chief executive officer, Verodin will keep its solutions available on a standalone basis through resellers, as well as through the global community of FireEye channel partners.
Led by Kevin Mandia, chief executive officer, FireEye offers a single platform that blends innovative security technologies, threat intelligence, and consulting to eliminate the complexity and burden of cyber security for organizations struggling to prepare for, prevent, and respond to cyber attacks. The company has over 7,900 customers across 103 countries, including more than 50% of the Forbes Global 2000.