FireEye Rebrands as Mandiant (FEYE) After Product Biz Sell-Off

FireEye on Monday confirmed that its corporate name change to Mandiant Inc. FEYE is effective from Oct 4. The company also stated that it will trade on the Nasdaq stock exchange under the “MNDT” ticker symbol from Oct 5.

The cybersecurity solution provider’s latest move is pursuant to its asset and brand name sale agreement announced on Jun 2. Per the agreement, FireEye had agreed to sell its product business, including the FireEye brand name, to a consortium led by the private-equity firm, Symphony Technology Group (STG), in an all-cash transaction worth $1.2 billion.

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, the company undoes its 2014 acquisition, which brought Mandiant solutions and FireEye products together.

FireEye, Inc. Price and Consensus

FireEye, Inc. price-consensus-chart | FireEye, Inc. Quote

Rapid Adoption of Mandiant Solutions

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

Stocks to Consider

Mandiant, formerly known as FireEye, carries a Zacks Rank #4 (Sell) at present.

Better-ranked stocks in the broader technology sector include Microsoft MSFT, STMicroelectronics N.V.  STM, and NVIDIA Corporation NVDA, 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 Microsoft, STMicroelectronics and NVIDIA is currently pegged at 11.1%, 5%, and 19.5%, respectively.

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