SECURITY
SECURITY
SECURITY
FireEye acquires cybersecurity monitoring startup Verodin for $250M
Cybersecurity firm FireEye Inc. today said it has acquired monitoring startup Verodin Inc. for $250 million in a cash-and-stock deal.
Founded in 2014, Verodin’s offers a Security Instrumentation Platform that has been designed to allow businesses to track the effectiveness of cybersecurity controls, enabling them to validate the protection of their business-critical assets.
The company’s cloud-based SIP can be deployed into customer information technology environments to test the effectiveness of the customer’s endpoint, email, cloud and network controls. Verodin’s platform continuously tests and analyzes results to proactively provide alerts, validate and optimize control configuration as well as providing evidence demonstrating if the controls purchased and deployed are actually delivering the desired business outcomes.
Verodin had raised $34 million in venture capital funding including a $21 million Series B round in July. Investors include TenEleven Ventures, Bessemer Venture Partners, Capital One Growth Ventures, Citi Ventures, Cisco Investments, Crosslink Capital, Blackstone Ventures and Rally Ventures.
“Security-conscious customers red-team their networks – they need the unvarnished truth of how effective their security programs are,” FireEye Chief Executive Officer Kevin Mandia said in a statement. “Verodin gives us the ability to automate security effectiveness testing using the sophisticated attacks we spend hundreds of thousands of hours responding to and provides a systematic, quantifiable and continuous approach to security program validation.”
Verodin is expected to increase FireEye’s billings and revenue growth with an additional $20 million to billings this year growing to more than $70 million in billings in 2020. With the additional revenue, FireEye adjusted its 2019 forecast for earnings before certain costs such as stock compensation to between 12 and 16 cents a share on revenue of $890 million to $900 million and billings of $935 million to $955 million.
Markets were mostly ambivalent about the news as FireEye’s share price droppe 0.8% in regular trading and remained steady in after-hours trading.
The acquisition closed today. Verodin customers will see no notable changes, with the company continuing to offer services on a standalone basis through resellers. The company’s services will also be made available via FireEye channel partners.
Image: Verodin
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