Security News > 2020 > November > FireEye Acquires Respond Software, Gets $400 Million Investment Led by Blackstone
FireEye on Thursday announced a $400 million strategic investment led by investment giant Blackstone, which the company says will be used to support growth initiatives, including the acquisition of Respond Software, also announced on Thursday.
FireEye said it paid roughly $186 million in a combination of cash and stock to acquire Respond in a transaction that closed on November 18, 2020.
Founded by Mike Armistead, Robert Hipps and Chris Calvert, Mountain View, Calif.-based Respond Software emerged from stealth mode in August 2017 with software designed to automate the role of security analysts and make security operations centers more efficient.
Respond Software's extended detection and response engine will be integrated into the Mandiant Advantage platform, FireEye said.
Under the terms of its investment, Blackstone and co-investor ClearSky will purchase $400 million in shares of a newly designated 4.5% Series A Convertible Preferred Stock of FireEye with a purchase price of $1,000 per share, that will be convertible into shares of FireEye's common stock at a conversion price of $18.00 per share.