Popular but loss-making security firm hopes to move on with hefty investment
Security outfit FireEye has confirmed an initial public offering (IPO) as it tries to raise $175 million (£114m) to develop the loss-making company.
It has filed a registration statement with the US Securities and Exchange Commission and brought in Morgan Stanley, Goldman Sachs, JP Morgan and Barclays Capital to see the IPO through. It plans to use the ticker ‘FEYE’.
The company, which produces appliances designed to prevent threats entering the network using its own form of sandboxing code, has been busy recruiting big names in the industry, including former Symantec CEO Enrique Salem, who sits on the board. Former McAfee CEO David DeWalt is the current chief at FireEye.
It appears the firm isn’t looking to be acquired, unlike rival Sourcefire which agreed to be brought under Cisco’s wing following a $2.7 billion offer.
FireEye has some well-known investors who look set to benefit from the IPO, including Sequoia and the Silicon Valley Bank with the biggest and smallest shares respectively.
Its revenue is rising fast, more than doubling in the first half of 2013 to $61.6 million, up from $29.7 million in the same period of 2012. Yet it recorded a loss of $67.2 million, according to Forbes.
What do you know about Internet security? Find out with our quiz!