FireEye acquires Verodin for $250 million, updates outlook

FireEye Inc. said late Tuesday it acquired security instrumentation company Verodin and adjusted its outlook. The Milpitas, Calif.-based cybersecurity company said it closed on a $250 million cash and stock deal to acquire Verodin. "The Verodin Security Instrumentation Platform adds 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," FireEye said in a statement. FireEye said the acquisition will add about $20 million to billings in 2019 and more than $70 million to billings in 2020. The company now forecasts adjusted second-quarter earnings of break-even to 2 cents a share on revenue of $213 million to $217 million, and billings of $207 million to $222 million. For the year, FireEye expects adjusted earnings of 12 cents to 16 cents a share on revenue of $890 million to $900 million, and billings of $935 million to $955 million. Analysts surveyed by FactSet expect earnings of 2 cents a share on revenue of $214.6 million and billings of $212.5 million for the second quarter, and earnings of 19 cents a share on revenue of $885.1 million and billings of $925.7 million for the year. FireEye shares were flat after hours, following a 0.8% decline to close Tuesday at $14.24.

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