FireEye Acquires Security Effectiveness Testing Firm Verodin for $250 Million
FireEye (NASDAQ: FEYE) announced on Tuesday that it has acquired Verodin, a provider of tools that help test the effectiveness of cyber security controls, in a deal valued at roughly $250 million in cash and stock.
Verodin’s Security Instrumentation Platform (SIP) is deployed in an organization’s IT environment and continuously tests the effectiveness of endpoint, cloud, email and network controls. The solution helps enterprises ensure that the products they have purchased and deployed are actually protecting data and assets.
Virginia-based Verodin has raised approximately $34 million, including a $21 million Series B funding round in July 2018.
FireEye says that Verodin’s SIP will add “significant new capabilities to the FireEye portfolio by identifying gaps in security effectiveness due to equipment misconfiguration, changes in the IT environment, evolving attacker tactics, and more.”
“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. 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,” said Kevin Mandia, chief executive officer at FireEye. “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. 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.”
FireEye further explained that Verodin’s platform will integrate with FireEye’s Helix security orchestration capabilities to help customers prioritize and automate continuous improvement of security controls.
Verodin solutions will continue to be available on a standalone basis through Verodin resellers and FireEye channel partners.
FireEye expects the acquisition, which closed Tuesday, to contribute more than $70 million to 2020 billings and be accretive to 2020 revenue, cash flow and non-GAAP operating income.