FireEye secures 'game changer' iSIGHT deal

Threat intelligence player iSIGHT Partners snapped up for $200m

FireEye has snapped up threat intelligence player iSIGHT Partners for $200m (£141.9m) in a move it claims will create the "most advanced and comprehensive private cyber-threat intelligence operation".

Founded in 2007, iSIGHT has an intelligence network which monitors threats and has almost 350 staff across 17 countries.

With the deal, which closed on 14 January, iSIGHT customers will still be able to access its products but FireEye said it intends to add new intelligence subscription models according to verticals so clients can add more specialised offerings.

Meanwhile, FireEye said its customers will benefit from more protection with the iSIGHT intelligence network introduced to their subscriptions.

David DeWalt, FireEye chief executive, said the deal helps to differentiate the company.

"This acquisition extends FireEye's intelligence lead with an offering no one else in the industry can match," he said.

News of the deal follows FireEye's 2014 acquisition of endpoint security player Mandiant.

John Watters, iSIGHT's founder, said: "Until now, only governments and large enterprises have been able to achieve intelligence-led security, but with the combined resources of FireEye, Mandiant and iSIGHT, we can make the benefits of intelligence-led security available to a broad range of organisations."

"When coupled with the technology and services of FireEye and Mandiant, this intelligence capability is a game changer for the industry and enables an intelligence-led security model that other security companies will be hard pressed to replicate," he added.

Industry analyst Megabuyte said the deal could be part of a wider trend of consolidation in the security market, as players such as Barracuda see their share prices tumble.

"As some vendors struggle with their stock market valuations, or to raise funds as private companies, we expect an increasing number of these companies to be picked off by the financially stronger vendors," the analyst said.

As well as announcing the acquisition, FireEye also released a financial update for its Q4 which saw its numbers in line with expectations.

For its Q4, FireEye expects its sales to be between $184m and $185m and billings to be between $256m and $257m.

DeWalt said: "We posted solid results in our fourth quarter. We have built a powerful platform to combat advanced threats, and we will continue to expand with new products and subscriptions, including new subscriptions based on iSIGHT Partners threat intelligence."

FireEye said it will release its full financial results for 2015 on 11 February.