CRWD - FireEye analysts question $1.2B separation that leaves high-growth low-margin business

Yesterday, cybersecurity firm FireEye (FEYE) announced the sale of its software business and name to a Symphony Technology Group-led consortium for $1.2B in cash.The high-growth Mandiant business, which focuses on threat responses, will remain behind as Mandiant Solutions. FireEye acquired Mandiant in a $1B cash-and-stock deal in 20133.Here's a slide from FireEye's presentation that shows what products/businesses will go where after the deal closes before year's end:FireEye also notes that the Mandiant business had $424M LTM revenue through Q1, stood at $237M ARR as of March 31, and had a three-year revenue CAGR of 23% through last year.After the deal closes, FireEye Products and Mandiant Solutions will continue to have a partnership that includes a reseller and marketing cooperation, strategic collaboration, and transition services agreement.Morgan Stanley analyst Hamza Fodderwala is torn on the remaining Mandiant business, which offers higher growth but "lower gross margin and scalability," which will continue valuation debates. The analyst

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FireEye analysts question $1.2B separation that leaves high-growth, low-margin business