FireEye Slumps On Deal To Sell Products Business, Firm’s Name By Investing.com

By Dhirendra Tripathi

Investing – FireEye (NASDAQ:FEYE) shares plunged Thursday after the company’s decision to sell its products business, including the FireEye name.

Private-equity firm Symphony Technology will buy the products business and the company name for $1.2 billion in cash, FireEye said in a note.

The transaction is expected to close by December. FireEye shares tumbled 14% on Thursday.

The company’s announcement of up to $500 million share buyback failed to impress investors who were disappointed by the twin sales.

The deal will separate FireEye’s network, email and cloud security products from its cyber forensics unit, Mandiant Solutions.

Mandiant, acquired by FireEye in 2014, will return as an independent company, focused on cyber-incident response and cybersecurity testing, and will be publicly traded following the deal.