January 29, 2016

Does the FireEye-iSight Partners merger equal success?

A cybersecurity firm FireEye recently acquired iSight Partners, a cyber threat intelligence company.

In a $200 million cash deal, FireEye, a cybersecurity firm best known for its appliances that protect networking systems, recently moved to acquire iSight Partners, a leading cyber threat intelligence provider. Stockholders will receive another $75 million if the merger proves successful by 2018. While FireEye used to dominate its industry, Robert Hackett at Fortune wrote that its shares have consistently sunk since 2014.

Due to this fact, most industry analysts presume that FireEye pursued this acquisition to improve its own digital defenses with iSight's dynamic offerings. Through this move, FireEye should reach a new customer base by issuing helpful alerts to prioritize cyber threats for its customers, along with a variety of services to better support its clients.

iSight chairman and CEO John Watters told Hackett that the combined company will provide a more dynamic product. Watters continued to explain that his company will provide a "more composite view" for future FireEye products.

"The acquisition brings together two of the world's leading threat intelligence organizations, each with a different and complementary perspective on the threat environment," FireEye CEO David DeWalt, said during a conference call regarding the deal. "It also represents a significant milestone in the development of our unified intelligence-powered threat management platform."

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