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What Is FireEye’s Buyout Strategy in the Cybersecurity Space?


Feb. 18 2016, Updated 10:45 a.m. ET

FireEye strengthens its position in the threat intelligence space with ISight Partners acquisition

Previously in the series, we discussed FireEye’s (FEYE) fiscal 4Q15 and 2015 results. FireEye is aggressively targeting the cybersecurity space with its buyout strategy to gain an edge over its peers.

In February 2016, FireEye announced the acquisition of Invotas, a cybersecurity company that focuses on automation of security processes. FireEye intends to integrate Invotas security automation and orchestration capabilities with its threat management platform.

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In January 2016, FireEye announced the acquisition of ISight Partners for $200 million. ISight Partners is a threat intelligence services provider. ISight’s subscription services span cybercrime, activist hacking, and electronic spying. With the ISight acquisition, FireEye will be able to expand its presence in the digital defense space.

With the above acquisitions, FireEye is not only diversifying and strengthening its offerings in the security space, but it is also equipping itself against the threat posed by other leading players like Palo Alto Networks (PANW). The chart above highlights Palo Alto’s position against its peers Cisco (CSCO), Fortinet (FTNT), FireEye, and Checkpoint (CHKP).

Investors who wish to gain exposure to FireEye can consider investing in the iShares U.S. Technology ETF (IYW). IYW invests ~49% of its holdings in the application software space. It invests ~0.06% of its holdings in FireEye.


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