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Mandiant (MNDT) Completes FireEye Product Business Divestiture

·3 min read

Mandiant MNDT, formerly known as FireEye, last week announced that it has completed the proposed sell of its Product business to a consortium led by Symphony Technology Group (“STG”).

Notably, on Jun 2, the company announced that it will sell its product business, including the FireEye name, to a consortium led by the private-equity firm Symphony Technology Group (STG) in an all-cash transaction worth $1.2 billion.

Pursuant to the brand name sale agreement, FireEye changed its corporate name to Mandiant Inc. and started trading on the Nasdaq stock exchange under “MNDT” ticker symbol from Oct 5.

Mandiant Inc. Price

Mandiant Inc. Price
Mandiant Inc. Price

Mandiant Inc. price | Mandiant Inc. Quote

The asset-sell transaction has separated FireEye’s digital forensics and incident response arm, Mandiant, from its network, e-mail, and cloud security products. The deal makes Mandiant an independent publicly-traded company focusing on cyber-incident response and the cybersecurity testing market. Through this transaction, FireEye undoes its 2014 acquisition, which brought its products and Mandiant solutions together.

Mandiant has been witnessing a growing traction of its solutions. In the second quarter of 2021, Mandiant Consulting services revenues grew 26%, year over year, while the overall Mandiant Solutions billings climbed 44%.

Of late, FireEye has been focusing on expanding Mandiant’s capabilities. In this connection, it acquired Respond Software, a cybersecurity investigation automation company, in a cash-stock deal worth $186 million, in November 2020.

The buyout integrated Respond’s cloud-based machine learning with Mandiant Advantage’s expertise to deliver automated investigation alerts at machine speed to customers. Also, the buyout of Respond Software has enabled Mandiant Advantage to include the controls-agnostic AI-driven XDR capabilities, supported by the platform’s front-line intelligence, to help customers identify attacks and respond on time.

Further, the acquisition of Respond Software will help scale Mandiant’s existing Managed Defense resources by using cloud-based correlation and intelligent data-science models to deliver faster and better security outcomes.

Earlier, in October 2020, FireEye unveiled the Mandiant Advantage Platform, which includes Threat Intelligence, Security Validation, Managed Defense, and Consulting services. Notably, the company recorded a 27% sequential increase in the Mandiant Advantage user community in second-quarter 2021.

Zacks Rank & Key Picks

Mandiant currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Palo Alto Networks PANW, Ambarella AMBA and Texas Instruments TXN, all carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rate for Palo Alto Networks, Ambarella and Texas Instruments is currently pegged at 25.7%, 15%, and 9.3%, respectively.

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