FireEye will pay around $60 million (€43 million) in cash for the company

May 8, 2014 11:12 GMT  ·  By

IT security solutions provider FireEye has entered a definitive agreement to acquire nPulse Technologies, an enterprise forensics company that specializes in providing packet capture and big data security analytics. FireEye is prepared to pay around $60 million (€43 million) in cash and issue around $10 million (€7.3 million) in stock consideration. 

Through this latest acquisition, which is expected to close in the second quarter of 2014, FireEye wants to provide its customers with unmatched incident investigation and remediation solutions.

“When combined withMandiant services and the services capabilities of our partners, we’ll be able to provide customers complete visibility into the network with quality analytics that accelerate the path from detection to resolution,” David DeWalt, the CEO of FireEye, noted in a blog post.

“This acquisition is a vital part of our long-term strategy to build a single security platform that protects against the most advanced threats and offers customers one solution to detect, contain, resolve and prevent threats.”

FireEye’s decision to acquire nPulse came after the two companies formed a technology partnership earlier this year. They’ve realized that nPulse’s network information combined with FireEye’s threat intelligence and endpoint data has been beneficial for the customers of both organizations.

“When we established a partnership with FireEye, our customers immediately realized the value of having comprehensive threat information in one central dashboard,” said Tim Sullivan, president and chief executive officer of nPulse Technologies.

“As the security industry evolves, customers are looking for one trusted partner to provide a comprehensive solution that provides threat data as well as a path to remediation. We're looking forward to joining the FireEye team and helping to transform the security industry.”

By acquiring nPulse, FireEye wants to expand its security platform and provide customers with the industry’s first “Enterprise Forensics” solution that offers a unified view of network to endpoint forensics.

FireEye’s threat analytics and the Enterprise Forensics solution will form a comprehensive intelligence platform. When combined with FireEye Managed Defense, the solution will provide advanced managed service capabilities.

When it comes to threat management, FireEye is confident that a comprehensive platform will be provided through the combination of the Network Threat Prevention Platform, newly introduced IPS capabilities, and nPulse forensics.

FireEye shares dropped 22% on Tuesday, after the company reported first quarter earnings. Crowd-sourced equity research platform Seeking Alpha advised investors to sell and avoid FireEye stock after news broke that, while the company’s revenue was up 161%, expenses increased by 217%.