By Dan Primack
January 3, 2014

FORTUNE — FireEye (FEYE) today announced that it has acquired cyber-security company Mandiant for nearly $1 billion in stock and cash. The deal would have been valued  at $1.03 billion, but FireEye shares dipped 5.7% today before news of the acquisition was announced at market close.

Mandiant founder and CEO Kevin Mandia will become FireEye’s chief operating officer.

Sellers include One Equity Partners and Kleiner Perkins Caufield & Byers, which invested $70 million in Mandiant more than two years ago.

Mandiant is best-known for publicly issuing a report on Chinese cyberespionage last February, which landed Kevin Mandia on the cover of Fortune. Shortly after the publication of that piece, Mandia appeared at Fortune BrainstormTech in Aspen, to discuss his decision and broader issues of cyber-security.

What follows is a video of that interview, conducted by Fortune’s Nina Easton:

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