FireEye acquires Verodin for identifying gaps in security
The security company FireEye announced Tuesday that it has acquired Verodin, a firm with a platform that helps validate the effectiveness of cybersecurity controls. The acquisition closed Tuesday and is valued at approximately $250 million in cash and stock.
The Verodin Security Instrumentation Platform complements companies’ existing cybersecurity products and services. It runs tests to identify vulnerabilities due to problems such as equipment misconfiguration, changes in the IT environment or evolving attacker tactics.
Combined with FireEye’s frontline intelligence, the platform will be able to measure and test security environments against known and newly-discovered threats. It will integrate with FireEye’s Helix security orchestration capabilities to help customers prioritize and automate updates to security controls.
Verodin’s offerings will still be available on a standalone basis via Verodin resellers, as well as FireEye channel partners.
“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,” FireEye CEO Kevin Mandia said in a statement. “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.”
The acquisition is expected to accelerate FireEye’s billings and revenue growth, adding a projected $20 million to billings in 2019 and more than $70 million to billings in 2020.
With that in mind, FireEye updated its Q2 guidance, now forecasting revenue in the range of $213 million to $217 million and billings in the range of $207 million to $222 million. For the full fiscal year 2019, the company expects revenue in the range of $890 million to $900 million and billings in the range of $935 million to $955 million.