Shares of FireEye Inc. FEYE are trading lower by about 1.4% today. Regardless, the embattled cybersecurity firm, which has lost about 75% of its value since June, is grabbing headlines as M&A news and rumors swirl.
First of all, FireEye has been busy over the past few weeks, scooping up smaller firms and launching a new product. FireEye's first move was the buyout of iSIGHT Partners last month, a Texas-based company that focuses on preventing attacks before they happen and even deploys intelligence agents overseas.
More recently, FireEye announced Monday that it closed a deal to acquire Invotas, a firm that specializes in improving response times after attacks. The company's product is called the "Security Orchestrator," and it is designed to compile information from a range of security products and automate responses when an incident occurs.
Furthermore, FireEye recently launched a new product of its own, FireEye Essentials. This new product is a lower-cost and simpler version of its FireEye Global Threat Management Platform. FireEye is targeting smaller, midmarket companies with this offering.
All of these moves are important because it signals an effort by FireEye to move past the enterprise-level, end-point protection products it started with. Any new idea to change the fate of the company should probably be welcomed by investors at this point.
In that same vein, rumors swirled today suggesting that FireEye itself might be the target of a buyout. Benzinga reported on a tweet saying that Cisco CSCO might be interested in taking over FireEye, although FireEye has been mentioned as a takeover target several times in the past with no real action coming out of it.
As mentioned already, change is needed from FireEye, which currently has a Zacks Rank #4 (Sell). While the company seems to be on the offensive by buying out a couple of smaller firms, a bigger player might sense that now would be a good time to buyout FireEye at a discounted price.
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