The shares of FireEye Inc (NASDAQ:FEYE), a cyber security company skyrocketed by more than 22% to $50.25 after hours on Thursday. The sudden spike of the stock was propelled by the announcement that it struck an agreement to acquire Madiant Corp, a computer forensics expert for $1.05 billion in cash and stock.

Under the terms of the agreement, FireEye (NASDAQ:FEYE) will pay $106.5 million in cash to the shareholders of Madiant and it will issue $21.5 million shares and options worth around $939 million based on the closing price of the stock at around $43.69 per share on Monday.

Madiant acquition allows faster innovation

David Dewalt, chairman and CEO of FireEye (NASDAQ:FEYE) emphasized that acquiring Madiant allows the company to develop innovative products and services faster. He said, “Organizations today are faced with knitting together a patchwork of point products and services to protect their assets from advanced threats. Together, the size and global reach of FireEye and Mandiant will enable us to innovate faster, create a more comprehensive solution, and deliver it to organizations around the world at a pace that is unmatched by other security vendors.”

According to Dewalt Madiant has a “very strong navy of cyber seals who respond to breaches, and they are good with what they do.” He was a former chairman of the board of Madiant. Dewalt added that his primary objective is to established the strongest security company worldwide.

Billings and revenue guidance boost stock price

The company’s billings and revenue guidance pushed the stock price higher. FireEye (NASDAQ:FEYE) raised its revenue outlook in the range of $55to $57 million, up from its previous estimate of $52 to $54 million. For the full year 2013, FireEye projected that its would be able to deliver a revenue in the range of $159 to$161 million, higher than its previous guidance at around $156 to $158 million.

FireEye (NASDAQ:FEYE) also projected that its billing for the fourth quarter will increase to around $95 to $100 million, up from its previous estimate in the range of $82 to $86 million. Full the entire year 2013, the cyber security company is expecting to deliver around $245 to $259 million total billing.

For the fiscal year 2014,  FireEye (NASDAQ:FEYE) estimated an increase in revenue and billing to aroungd $400-$410 million and $540 to $560 million, respectively. Its FY2014 billing and revenue outlook reflect the contribution of its Mandiant acquisition. Prior to the deal, the company predicted that it would generate $240 to $250 million revenue and $350 to $370 million billings this year.