Cisco Systems Inc. (NASDAQ: CSCO) has been on the tip of the spear in networking and innovating the Internet of Everything (IoE). Part of this development is ensuring the security of the users from cyberattacks and security breaches. As result, Cisco is adding to its IoE portfolio with its newest security acquisition.
Source: Thinkstock
The company announced that it intends to acquire OpenDNS, a private security company. The goal of this acquisition is to boost Cisco’s Security Everywhere approach by adding broad visibility and threat intelligence from the OpenDNS cloud-delivered platform.
Under the terms of the agreement, Cisco will pay $635 million in cash and assumed equity awards, plus retention-based incentives for OpenDNS. The acquisition is expected to close in the first quarter of fiscal 2016.
Senior Vice President and General Manager David Goeckeler runs the Cisco Security Business Group organization that OpenDNS will be joining.
With its eyes on the future, Cisco is expecting to handle a network of nearly $50 billion devices by 2020 in the digital economy and the IoE. Considering the sheer number of devices and connections, there are much more opportunities for security breaches.
By providing comprehensive threat awareness and pervasive visibility, the combination of Cisco and OpenDNS will enable advanced threat protection across the full attack continuum — before, during and after an attack.
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Cisco Chief Technology and Strategy Officer Hilton Romanski commented on the acquisition:
As more people, processes, data and things become connected, opportunities for security breaches and malicious threats grow exponentially when away from secure enterprise networks. OpenDNS has a strong team with deep security expertise and key technology that complements Cisco’s security vision. Together, we will help customers protect their extended network wherever the user is and regardless of the device.
Shares of Cisco closed Monday down 2.6% at $27.54, amid news of a potential Greek exit. In early trading indications Tuesday, shares were up 0.8% at $27.75. The stock has a consensus analyst price target of $31.45 and a 52-week trading range of $22.49 to $30.31.
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