Cybersecurity provider FireEye announced this week that it has acquired iSight for $200 million as it plans to add new intelligence subscription models that include services for specific verticals.
The transaction, which closed on Jan. 14, 2016, will bring “immediate value” to FireEye’s existing customer base through increased protection from the iSIGHT intelligence network, which monitors and mines global cyber threat development and thousands of threat actors, according to the announcement.
The purchase of iSIGHT builds on FireEye’s other acquisitions, which include the $1 billion buyout of Mandiant at the beginning of 2014. Currently FireEye has more than 4,000 customers, including more than 650 of the Forbes Global 2000.
The plan to create tailored cybersecurity strategies for specific industry verticals, such as healthcare or retail, could pay off as security threats become more sophisticated and targeted. The financial consequences of sensitive data leaks at the average organization have reached $1.9 million, according to a recent Blue Coat Elastica report.
“This acquisition extends FireEye’s intelligence lead with an offering no one else in the industry can match,” said David DeWalt, FireEye chief executive officer and chairman of the board. “The biggest mistake most people make is thinking threat intelligence is a collection of virus definitions in a shared database. Forward-looking security organizations – from governments to the private sector – know threat intelligence is the key to establishing a robust security posture tuned for the threats targeting each organization. As the cyber operations become integrated with physical, geopolitical and competitive conflict, an intelligence-led approach to security will be key in detecting the most sophisticated threats and responding to them quickly and effectively.”
iSIGHT has around 350 dedicated staff, 250 of whom are cyber threat intelligence experts sprawled across 17 countries and covering 29 languages, FireEye 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 organizations,” said John Watters, iSIGHT’s founder and chief executive officer prior to the acquisition. “We’re bringing iSIGHT together with intelligence teams inside of FireEye and Mandiant that are among the best in the industry, fusing victim-based intelligence with attacker-based, over-the-horizon insights derived from iSIGHT’s global cyber-threat ecosystem. 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.”
In after-hours trading on Wednesday, FireEye stock rose 6.52 percent to $15.84 after shares have taken a beating in recent months, dipping below $15 in the wake of FireEye’s “November billing guidance cut and a market rout”, according to Seeking Alpha.