Wednesday was not the first time rumors circulated that the security company FireEye was the target of a takeover bid by giant Cisco Systems network. And probably not the last.But this time the rumor had enough traction not only in Goose FireEye share of about 5 percent, exceeding $ 43.68, but also cause a rare public response by Cisco CEO John Chambers, as he spoke in a conference call.
While admitting he was "breaking my own rule" against Respond to Market rumors, he did just that. "I would not bet on that you have heard today," he said, clearly referring to shares FireEye.FireEye quickly turned most of trading after hours of the day, the stock fell more than 3 percent and noon.
But there is another reason why an agreement with Cisco or other person is not coming. FireEye is not for sale. According to sources close to the management of the company sources, who are not ready to consider offers to buy before reaching $ 1 billion in annual revenue.Nearly $ 426 million was recorded last year, analysts expected to be approximately $ 630 million this year and about $ 865 million in 2016. If FireEye management sticks to his guns, which means that will push the offers, or at least rumors of bids, at least until 2017.
Yet FireEye would make a tempting target for several potential suitors, including Cisco, Hewlett-Packard and IBM, all of which play in different aspects of the security company. Its current market capitalization is approximately $ 6.6 billion.FireEye specialized in filtering technology in real time protecting corporate networks. Secret ingredient is a virtual machine (software that acts as a physical machine) that is installed on the customer's network to check all incoming traffic for malware.
This virtual machine acts as a kind of mail / sluice room where each package is opened before it is delivered to the recipient. If an email arrives with an attachment containing a virus, which opened its doors and has published, where he can not hurt anything. If it contains malware, the incident was reported to the FireEye cloud command center, which oversees about $ 50 billion of such incidents every day. If it is safe, it is forwarded to the recipient.
FireEye emerged as a power back-and-forth in computer security early last year, when weeks after its IPO in 2013 spent $ 1 billion acquiring Mandiant, specializing in incident response - help investigate and clean disaster after a major security breach. His most famous case was the attack by North Korean hackers against Sony Pictures Entertainment.
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