NEW YORK: FireEye announced a nearly $1 billion deal Thursday to buy Alexandria, Va.-based Mandiant, combining two of the country's most high-profile cybersecurity firms at a time when U.S. corporations have become increasingly concerned about hackers.
Mandiant has become well known for its work tracking down security breaches that originate in China and can lay dormant in corporate computer networks for years. The firm has worked with The Washington Post as well as the New York Times and other media companies.
FireEye, based in California, bought Mandiant for $989 million in stock and cash, executives said Thursday. The deal was approved by both companies' boards and closed on Dec. 30.
With Thursday's announcement, Mandiant will become a public company for the first time. The decade-old firm says it does about $100 million a year in sales. Its 500 employees serve about 500 customers, most of which are in the Fortune 500, chief executive Kevin Mandia said in an interview.
Most of Mandiant's and FireEye's customers are U.S. corporations, but the companies hope that the merger will give them a strong position to expand internationally.
That could create tension between FireEye and the U.S. government as the company seeks more foreign clients, many of whom have grown suspicious of Washington during the ongoing controversy over NSA surveillance.
Although Mandiant and FireEye operate in the same industry, their capabilities are distinct. FireEye monitors customers' computer networks and detects when their security has been compromised. Mandiant, meanwhile, sells an incident-response platform that helps businesses determine when sensitive information has been breached and, the company says, automatically closes vulnerabilities.
Together, Mandiant and FireEye will be better equipped to move quickly from detection to response, said David DeWalt, FireEye's chairman and chief executive.
"What we're able to do now is go from basically alert to detection to a fix in minutes or seconds," he said. "If FireEye detects a breach, we can immediately communicate that to the Mandiant platform and essentially verify scope on all of the computers."
Mandiant accepted FireEye's deal even though it had considered making an initial public offering, Mandia said. In September, FireEye's IPO performed above expectations, beating its $16 price estimate by about $4 a share.
The company is trading at $41 a share.
FireEye has been pouring money into new markets and products. The company lost nearly $139 million over the past year as it spent on research and development.
Despite the losses, information security experts say they are optimistic about FireEye's growth, noting that demand for its products isn't going to shrink anytime soon.
"If we were to be optimistic about 2014, we could say that boards will finally pay attention to cybersecurity risks," said Allan Friedman, a cybersecurity scholar at the Brookings Institution and George Washington University. "There could be any number of senior officers who are going to be getting calls from their board saying, 'What are we doing about this?' and those people are going to go running to expert companies."
FireEye buys Mandiant in cybersecurity merger
FireEye buys Mandiant in cybersecurity merger
Diriyah Co. partners with Midad to develop Four Seasons hotel in Diriyah
RIYADH: Saudi Arabia’s sovereign wealth fund-backed developer, Diriyah Co., has signed a joint development agreement with Midad Real Estate Investment and Development Co. to construct the Four Seasons Diriyah Hotel and private residences.
The partnership will strengthen collaboration between the two companies through the development of the luxury Four Seasons Diriyah, which will feature 159 rooms, alongside private Four Seasons residences, spanning approximately 235,000 sq. meters within Diriyah’s master plan.
The project’s total value is projected at SR3.1 billion (approximately $827 million), encompassing both land acquisition and construction expenses.
Midad is one of the Kingdom’s leading real estate developers, expanding its portfolio of high-end projects and maintaining numerous strategic partnerships with prominent global brands, reinforcing its reputation as a trusted name in luxury residential and hospitality development across Saudi Arabia.
This partnership marks the first major collaboration between Diriyah Co. and Midad, supporting Diriyah’s plans to develop 40 luxury hotels across its two main projects: the 14-sq.-km Diriyah Project and the 62-sq.-km Wadi Safar Project, a premium destination that blends lifestyle, culture, and entertainment.
Commenting on the agreement, Minister of Tourism and Secretary-General of Diriyah Co., Ahmad Al-Khatib, said: “The Kingdom continues to set new standards in developing tourism destinations, with Diriyah at the forefront.”
He added that such partnerships enhance the world-class experiences Saudi Arabia offers and strengthen the Kingdom’s position as a leading destination in this sector.
Diriyah Co. CEO Jerry Inzerillo commented that the Four Seasons Diriyah Hotel and Residences will be one of the Kingdom’s largest luxury hotels.
“We are proud to announce this joint development with Midad, one of Saudi Arabia’s top real estate developers. This agreement reflects our ongoing commitment to enabling Saudi partners to contribute to Diriyah’s transformative journey and confirms Midad’s confidence in the opportunities the project presents,” Inzerillo added.
Midad CEO Abdelilah bin Mohammed Al-Aiban said: “This project is a pivotal milestone for our company, allowing us to bring the Four Seasons experience to one of the Kingdom’s most prominent heritage destinations.”
He added: “We are excited to deliver a project that embodies design excellence, world-class service, and sustainable value, while contributing meaningfully to Saudi Arabia’s tourism, cultural, and economic ambitions.”
The collaboration comes amid rapid progress on the SR236 billion Diriyah project, which has awarded construction contracts worth more than SR101.25 billion to date.
Diriyah is expected to contribute approximately SR70 billion directly to the Kingdom’s gross domestic product, create more than 180,000 jobs, accommodate 100,000 residents, and host around 50 million annual visitors.
The development will feature contemporary office spaces accommodating tens of thousands of professionals across technology, media, arts, and education, complemented by museums, retail destinations, a university, an opera house, and the Diriyah Arena.
It will also offer a diverse selection of restaurants and cafes, alongside nearly 40 world-class resorts and hotels distributed across its two primary master plans.
