NEW YORK (TheStreet) -- FireEye (FEYE) rose 24% to $51.00 in after-hours trading on Thursday after announcing it will acquire computer forensics company Mandiant for $1.05 billion in cash and stock, reported preliminary results for the fourth-quarter, and updated 2014 guidance based on the acquisition.
Mandiant is best known for revealing a Chinese military unit that was reportedly behind several hacking attacks on U.S. companies. Last year the two companies entered a partnership that made both services easier to deploy together. The merger should help FireEye strengthen its current cybersecurity products.
FireEye CEO David DeWalt said the merger will help organizations that are now "faced with knitting together a patchwork of point products and services to protect their assets from advanced threats."
In a separate press release on Friday FireEyes increased its guidance for the fourth quarter. The company now expects revenue of between $55 million and $57 million for the fourth- quarter, compared to the previous guidance of $52 million to $54 million. FireEye also expects total revenue for 2013 to be between $159 million and $161 million, compared to previous estimates of between $156 million and $158 million.
"Total fourth quarter billings are expected to be in the range of $95 to $100 million, compared with previous guidance of $82 to $86 million," the company said in a press release. "Total billings for the year are expected to be between $254 and $259 million, compared with previous guidance of $240 to $245 million."
FireEye also noted that 2014 revenue would be between $400 and $410 million as a result of the Mandiant acquisition, up from a previous forecast of $240 million to $250 million. Total billings for 2014 are expected to be between $540 and $560 million, compared with the previous expected range of $350 to $370 million.FEYE data by YCharts