Jan 3 Shares of cybersecurity company FireEye
Inc were set to open 24 percent higher on Friday after
the company bought computer forensics specialist Mandiant Corp
for $1 billion.
The deal is a sign of further consolidation in the
cybersecurity industry, FBR Capital Markets analyst Daniel Ives
wrote in a note.
"This deal speaks to our thesis around massive consolidation
in the security landscape for 2014, with names such as Fortinet
Inc and Proofpoint Inc as prime acquisition
candidates ...," Ives said.
Analysts have said larger players such as IBM,
Symantec and Hewlett Packard could look to
acquire smaller security players to help drive growth as
spending on cybersecurity increases.
Cisco Systems Inc said in July that it would buy
cybersecurity company Sourcefire Inc for $2.7
Goldman Sachs raised its price target on FireEye's stock to
$45 from $40.
FireEye had raised its fourth-quarter revenue forecast on
The company's shares have more than doubled since they
debuted in September. The stock was trading at $50.50 before the
(Reporting by Neha Alawadhi in Bangalore; Editing by Kirti