FireEye Buys Verodin, Expands Cybersecurity Capabilities

FireEye has acquired Verodin, a security instrumentation company, in a $250 million cash and stock deal expected to grow FireEye’s revenue and add significant cybersecurity capabilities to the company’s portfolio.

FireEye said it anticipates the deal will add $20 million to billings in 2019 and more than $70 million to billings in 2020

Verodin’s Security Instrumentation Platform can identify security gaps because of equipment misconfiguration, changes in the IT environment and evolving attacker techniques. Coupled with FireEye’s intelligence, the platform can measure and test security environments against threats to identify risks in organizations’ security controls before a breach occurs.

The platform will also complement FireEye’s current technology services. Verodin will integrate with FireEye Helix, a cloud-hosted security operations platform, allowing customers to prioritize and automate security control improvements. And through the FireEye Managed Defense services, customers will also be able to implement Verodin cybersecurity measurement and validation solutions as-a-service.

Ultimately, this expands on Verodin’s service of testing and validating the effectiveness of security programs.

“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,” said FireEye CEO Kevin Mandia. “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.”

And according to Chris Key, co-founder and CEO of Verodin prior to the acquisition, this capability is extremely important as cybersecurity can no longer solely be based on assumptions and vendor claims, only finding out of insecurities after a breach occurs.

“By joining FireEye, Verodin extends its ability to help customers take a proactive approach to understanding and mitigating the unique risks, inefficiencies and vulnerabilities in their environments,” Key said.

Verodin solutions will still be available on a standalone basis through resellers FireEye channel partners.

And after the acquisition, FireEye expects revenue in the range of $213 million to $217 million for the second quarter of 2019.