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FireEye Stock Jumps 15% After Blackstone Leads $400m Investment

Practice Stock Trading
Updated: 20 November 2020

Shares of cyber-security company FireEye Inc (NASDAQ: FEYE) are up nearly 15% premarket on Friday after the company said it will receive $400 million worth of by Blackstone and security investment firm ClearSky. 

FireEye revealed that Blackstone and ClearSky will purchase $400 million in shares of its newly designated Series A convertible Preferred stock at $1,000 per share with the preferred stock convertible into FireEye common stock at $18 per share. 

“Blackstone and ClearSky have a track record of developing and supporting industry-leading cybersecurity companies. Their investment validates our vision and provides financial, operational and leadership resources to accelerate our strategy,” commented FireEye CEO, Kevin Mandia.

FireEye will appoint Viral Patel, a senior managing director at Blackstone, to its board of directors once the transaction closes.

The company said it plans to use the money from the investment to accelerate the growth of the company’s cloud platform and support strategic growth plans, which includes the acquisition of Respond Software which was also announced on Thursday. 

FireEye shares are up 14.89% premarket at $16.36 after closing Thursday’s session at $14.24. 

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