• Tuesday, March 05, 2024
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Next-Gen cybersecurity firm FireEye pops after $1 billion Mandiant deal


Hacking has become an ever-present threat for companies, governments, and private citizens alike in the 21st century — and that means next generation cyber-security firms are hot commodities. After one such firm, FireEye, announced on Thursday it was acquiring a second, Mandiant, investors have been falling all over themselves to get in on the action.

On Friday, FireEye stock surged over 35%, reflecting Wall Street’s bullish attitude toward the possibilities inherent in combining two companies with relatively new technology to fight hacking and cyber attacks. Sales of old-style anti-virus software has been on the decline, but Mandiant and FireEye have potential to grow.

Mandiant is best known as the company that reported links between hacking of US companies and a unit of the Chinese People’s Liberation Army. FireEye purchased it for about $1 billion in cash and stock. The deal closed Monday.

As of 3:15pm, FireEye shares traded at $56.10, up from $41.13 at Thursday’s close, Forbes reports.