Security analysts expect that FireEye's decision to sell off its products business will help accelerate growth of the company's current Mandiant software and services group — while creating some uncertainty for customers of its network, email, endpoint, and cloud security products.
FireEye Wednesday announced it had agreed to sell its products business — and brand name — to private equity firm Symphony Technology Group (STG) for $1.2 billion. The agreement is expected to close by year-end and will result in FireEye's security products and related management and orchestration technologies being peeled away from Mandiant's security intelligence and incident responses services business.
When complete, the transaction will result in an independent Mandiant Solutions company focused on a range of security consulting, managed defense, threat intelligence, and validation services. FireEye's products, meanwhile, will be folded into a broader and rapidly growing portfolio of legacy security products that STG has acquired in recent years.
"Unfortunately, the future for the FireEye products business and its employees and customers now becomes highly uncertain," says Eric Parizo, an analyst at Omdia.
STG already owns multiple companies, including hybrid cloud security posture management vendor Redseal and long-troubled vendor RSA Security. STG is also set to close on its $4 billion acquisition of the McAfee enterprise unit later this year.
"Upon close, the addition of the FireEye products group will give STG a massive enterprise security portfolio, but one with redundancies in numerous areas, in ..
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