Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, October 11, 2019

Article Excerpt

FIREEYE INC., $15.08, symbol FEYE on Nasdaq, is a cybersecurity firm that aims to provide businesses and governments worldwide with real-time threat protection against increasingly sophisticated cyberattacks. Earlier this year, FireEye paid $250 million for Verodin. It’s a leader in testing and evaluating the effectiveness of a client’s existing cybersecurity controls. Verodin’s Security Instrumentation Platform adds new capabilities to FireEye by identifying gaps in security effectiveness, including those due to equipment misconfiguration, changes in the IT environment and evolving attacker tactics. That acquisition is helping FireEye’s CEO Kevin Mandia transform the company from a seller of software in a box to a cloud-based cybersecurity firm with steady revenue from ongoing subscriptions. At the same time, however, FireEye faces a dramatic increase in competition. The company went public in 2013 at $20 a share. Since then it has struggled achieve and maintain profitability and the stock is down more than 27%. FireEye’s shares currently trade well below its February 2014 all-time high of $85. On…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.