It would not be happy: leading players in the cybersecurity market FireEye and iSight Partners announced a merger
On Wednesday, January 20, the cyber security company FireEye announced the purchase of its rival iSight Partners . The deal was closed on January 14, its amount was $ 200 million, reports Reuters. This is a very important merger for the entire industry, because it involves some of the largest players in the cybersecurity market.
However, the amount paid by FireEye raises questions. Of course, it is no longer a secret that the ratings of companies from this industry began to decline after cyber attacks on the US government, Sony and Target Corp. This is happening against the background of a general downward trend in the ratings of private technology companies.
But iSight's estimate should have been close to $ 1 billion this year, company CEO John Waters expected. In August, he stated that the company’s plans were to attract $ 100 million of investments by the end of 2015. It would seem that $ 200 million is not at all the price for which it was necessary to sell the company. Perhaps the trend of revaluation of private companies is indeed so strong that the real value is several times lower than the estimate of private investors.
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However, after the market situation deteriorated, Waters realized that in these conditions it was too risky for the company to remain alone. Investors have become less compliant. Having lost hope of attracting the necessary funds, the entrepreneur thought about selling the company. Thanks to the merger, iSight will be able to achieve what she cannot do alone, says Waters.
True, FireEye was also in a difficult situation: over the past six months, the company's quotes fell by 67%.
FireEye is exploring how cyber threats work. ISight has no such developments. Since companies have different specializations, they will be mutually beneficial to each other.
The merger is definitely beneficial for FireEye, since iSight has an extensive network of 250 agents in 17 countries, including Ukraine, Brazil and India, which collect information on upcoming cyber attacks.
Both companies cooperate with government agencies, but FireEye looks more advantageous in the corporate sector. Therefore, in the future, the company plans to develop more actively in this direction.
According to venture investors, a fall in ratings will continue to lead to consolidation of players in the markets.
However, the amount paid by FireEye raises questions. Of course, it is no longer a secret that the ratings of companies from this industry began to decline after cyber attacks on the US government, Sony and Target Corp. This is happening against the background of a general downward trend in the ratings of private technology companies.
But iSight's estimate should have been close to $ 1 billion this year, company CEO John Waters expected. In August, he stated that the company’s plans were to attract $ 100 million of investments by the end of 2015. It would seem that $ 200 million is not at all the price for which it was necessary to sell the company. Perhaps the trend of revaluation of private companies is indeed so strong that the real value is several times lower than the estimate of private investors.
')
However, after the market situation deteriorated, Waters realized that in these conditions it was too risky for the company to remain alone. Investors have become less compliant. Having lost hope of attracting the necessary funds, the entrepreneur thought about selling the company. Thanks to the merger, iSight will be able to achieve what she cannot do alone, says Waters.
True, FireEye was also in a difficult situation: over the past six months, the company's quotes fell by 67%.
FireEye is exploring how cyber threats work. ISight has no such developments. Since companies have different specializations, they will be mutually beneficial to each other.
The merger is definitely beneficial for FireEye, since iSight has an extensive network of 250 agents in 17 countries, including Ukraine, Brazil and India, which collect information on upcoming cyber attacks.
Both companies cooperate with government agencies, but FireEye looks more advantageous in the corporate sector. Therefore, in the future, the company plans to develop more actively in this direction.
According to venture investors, a fall in ratings will continue to lead to consolidation of players in the markets.
Source: https://habr.com/ru/post/298080/
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