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FireEye Raises $400 Million Investment Led by Blackstone

Andrew Martin
·1 min read

(Bloomberg) -- FireEye Inc. said Thursday it raised $400 million in an investment led by an arm of Blackstone Group Inc., sending shares in the cybersecurity company surging about 10% in extended trading.

The Milpitas, California-based company said it will use the investment to support “strategic growth initiatives,” one of which was also outlined Thursday. FireEye said it acquired Respond Software, a cybersecurity investigation automation company, according to a company statement. The transaction closed Wednesday and is valued at about $186 million in cash and stock.

The investment from Blackstone Tactical Opportunities comes after months of surging cyber-attacks related to the coronavirus, including ransomware attacks on medical facilities and phishing email campaigns.

Blackstone was joined by ClearSky, a cybersecurity-focused investment firm, as co-investor in the transaction. The investment “validates our vision and provides financial, operational and leadership resources to accelerate our strategy,” Kevin Mandia, FireEye’s chief executive officer, said in the statement.

Viral Patel, a senior managing director at Blackstone who’s joining FireEye’s board, said that his company and FireEye have a “shared vision of the unique role FireEye can play in addressing the increasingly sophisticated cybersecurity challenges their customers face.”

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