FireEye acquires security testing start-up Verodin for US$250M Credit: FireEyeIDG
Business Management

FireEye acquires security testing start-up Verodin for US$250M

FireEye has acquired cyber security start-up Verodin for US$250 million in a deal closed on 29 May.

The acquisition will give the US-based cyber security vendor access to the Verodin Security Instrumentation Platform, a tool used to test the effectiveness of cyber security controls.

FireEye, which paid for the Virginia-based company in cash and stocks, expects to add roughly US$20 million to billings in 2019 and more than US$70 million to billings in 2020.

Founded in 2014 by Ben Cianciaruso and Christopher Key, Verodin claims to have a global customer base spanning “all major verticals”, and is backed by investors including Blackstone, ClearSky and Citi Ventures.

According to FireEye, Verodin will integrate its own solution with the vendor’s FireEye Helix security orchestration capabilities.

Customers will also be able to implement Verodin cyber security measurement and validation solutions as-a-service through the FireEye managed defence service and as an expertise-on-demand automated service.

Verodin’s products will be sold on a standalone basis through the start-up’s own resellers, as well as globally via FireEye’s channel partners.

“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,” FireEye CEO Kevin Mandia said.

“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.”

Read more: Chris Barton takes over as FireEye A/NZ channel lead

For the full 2019 financial year, FireEye expects to generate revenue in the range of US$890 million to US$900 million.

Meanwhile, Verodin’s now-former CEO Christopher Key said the acquisition would enable the company to help customers take a “proactive approach to understanding and mitigating the unique risks, inefficiencies and vulnerabilities in their environments”.

Last year, FireEye’s regional leadership underwent a shake-up with the departure of Australia and New Zealand director Richard Metcalfe. He was replaced five months later by Louis Tague, who joined the vendor from Veritas.

In August 2018, FireEye also appointed Chris Barton as its new head of channel and alliances for A/Nz.

Read more: Louis Tague exits Veritas to run trans-Tasman FireEye business


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