FireEye, Inc. (NASDAQ: FEYE), a Milpitas, Calif.-based intelligence-led security company, received a $400m strategic investment led by Blackstone Tactical Opportunities.
Blackstone will be joined by ClearSky, a cyber security-focused investment firm, as a co-investor in the transaction. Under the terms of its deal, Blackstone and ClearSky will purchase $400m in shares of a newly designated 4.5% Series A Convertible Preferred Stock of FireEye, with a purchase price of $1,000 per share. The Series A will be convertible into shares of FireEye’s common stock at a conversion price of $18.00 per share. The investment is subject to customary closing conditions. In conjunction with Blackstone’s investment in FireEye, FireEye will appoint Viral Patel, Senior Managing Director at Blackstone, to its Board of Directors upon the closing of the transaction.
The company intends to use the proceeds to support strategic growth initiatives, including the acquisition of Respond Software, as well as to accelerate the growth of its cloud, platform and managed services portfolio.
Led by Kevin Mandia, chief executive officer, FireEye is an intelligence-led security company working as a scalable extension of customer security operations, It offers a single platform that combines innovative security technologies, nation-state grade 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. FireEye has over 9,600 customers across 103 countries, including more than 50 percent of the Forbes Global 2000.