FireEye acquires Verodin for $250 million

FireEye has acquired Verodin, which provides cyber security control verification, for approximately $250 million in cash and stock, net of acquired net cash and excluding assumed unvested options, based on the closing price of FireEye’s common stock on May 24, 2019.

The Verodin Security Instrumentation Platform can help identify gaps in security effectiveness due to equipment misconfiguration, changes in the IT environment, evolving attacker tactics, and more.

Equipped with FireEye frontline intelligence, the Verodin platform will measure and test security environments against both known and newly discovered threats, empowering organizations to identify risks in their security controls before a breach occurs, and rapidly adapt their defenses to the evolving threat landscape.

FireEye said the acquisition will be accretive to revenue, cash flow from operations and non-GAAP operating income in 2020, and add approximately $20 million to billings in 2019 and more than $70 million to billings in 2020.

“Security effort does not equal security effectiveness. That is why security-conscious customers red-team their networks – they need the unvarnished truth of how effective their security programs are. 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,” said Kevin Mandia, chief executive officer at FireEye. “We believe there is no better way to train people and instrument better security than by continually attacking the environment and adapting security controls to the real threats. Finally, organizations will have a reliable and consistent way to quantify cyber risk in a manner understandable to frontline technicians and in the Board room.”

Verodin is based in McLean , Virginia.

In June 2016, Verodin closed a new $10 million Series A funding round with backin g from Blackstone, Rally Ventures, Crosslink Capital and Cisco Investments.