Cyber giant FireEye buys intelligence firm for $200M

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Leading cybersecurity firm FireEye Inc. said Wednesday that it has acquired the threat intelligence firm iSight for $200 million.

The move brings together two giants in the industry. FireEye’s Mandiant division is a prominent investigator of high-profile hacks — both Sony and Anthem employed Mandiant after they were breached — while iSight has uncovered multiple major international cyber threats.

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The acquisition significantly expands FireEye’s international tracking capabilities, adding 16,000 adversaries to its roster, about 20 times the number FireEye is currently tracking, according to Reuters.

“This acquisition extends FireEye’s intelligence lead with an offering no one else in the industry can match,” FireEye CEO David DeWalt said in a release.

The purchase follows months of stiff devaluations of cybersecurity firms after a spate of headline-grabbing hacks sent prices skyrocketing in 2015.

The deal includes a rider calling for another $75 million in cash and stock to iSight shareholders should the company meet certain sales targets by the second quarter of 2018.

Still, even the full $275 million would be far short of the $1 billion iSight CEO John Watters said last year that he expected to raise in a potential initial public offering this year.