FireEye Inc. announced that it has acquired iSIGHT Partners, a provider of cyber threat intelligence. Headquartered in Dallas, Texas, iSIGHT employs approximately 350 employees in 17 countries and provides its threat intelligence solutions to a customer base that includes over 250 government and 90 commercial clients. The company's delivery model is comprised of 90% subscriptions and 10% services. iSIGHT had 2015 revenues of approximately $40M and billings of approximately $50M.
The merger, which closed on January 14, calls for an upfront purchase price of $200M in cash and an earnout of up to $75M in cash and equity subject to the achievement of threat intelligence bookings on or before the end of FireEye's second quarter of 2018. Based on the upfront purchase price, the deal represents a revenue multiple of 5x revenue.
iSIGHT had originally planned to raise $100M in financing in 2015 with an IPO in 2016 at a valuation of over $1B. The decision to sell at a much lower price reflects the current funding and valuation environment of cyber-focused companies.
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