Cisco CSCO and Sourcefire FIRE today announced a definitive agreement
for Cisco to acquire Sourcefire, a leader in intelligent cybersecurity
solutions. Cisco and Sourcefire will combine their world-class products,
technologies and research teams to provide continuous and pervasive advanced
threat protection across the entire attack continuum -- before, during and
after an attack -- and from any device to any cloud.
Mobility, cloud and the evolution of the "Internet of Everything" are
drastically changing today's IT security landscape, making traditional
disparate products insufficient to protect organizations from dynamic
threats. Sourcefire delivers innovative, highly automated security through
continuous awareness, threat detection and protection across its
industry-leading portfolio, including next-generation intrusion prevention
systems, next-generation firewalls, and advanced malware protection.
The acquisition of Sourcefire adds a team with deep security DNA to Cisco
and will accelerate delivery of Cisco's security strategy of defending,
discovering, and remediating advanced threats. With world-class research
teams, increased intelligence and expanded threat protection, customers will
benefit from continuous security in more places across the network.
Under the terms of the agreement, Cisco will pay $76 per share in cash in
exchange for each share of Sourcefire and assume outstanding equity awards
for an aggregate purchase price of approximately $2.7 billion, including
retention-based incentives. The acquisition has been approved by the board
of directors of each company.
"'Buy' has always been a key part of our build-buy-partner innovation
strategy," said Hilton Romanski, vice president, Cisco Corporate
Development. "Sourcefire aligns well with Cisco's future vision for security
and supports the key pillars of our security strategy. Through our shared
view of the critical role the network must play in cybersecurity and threat
defense, we have a unique opportunity to deliver the most comprehensive
approach to security in the market."
"The notion of the 'perimeter' no longer exists and today's sophisticated
threats are able to circumvent traditional, disparate security products.
Organizations require continuous and pervasive advanced threat protection
that addresses each phase of the attack continuum," said Christopher Young,
senior vice president, Cisco Security Group. "With the acquisition of
Sourcefire, we believe our customers will benefit from one of the industry's
most comprehensive, integrated security solutions -- one that is simpler to
deploy, and offers better security intelligence."
"Cisco's acquisition of Sourcefire will help accelerate the realization of
our vision for a new model of security across the extended network," said
Martin Roesch, founder and chief technology officer of Sourcefire. "We're
excited about the opportunities ahead to expand our footprint via Cisco's
global reach, as well as Cisco's commitment to support our pace of
innovation in both commercial markets and the open source community."
The acquisition is expected to close during the second half of calendar year
2013, subject to customary closing conditions and regulatory reviews. Cisco
expects the acquisition to be slightly dilutive to non-GAAP earnings in
fiscal year 2014 due to normal purchase accounting adjustments and
integration costs. Once the transaction closes, Cisco will include
Sourcefire into its guidance going forward. Prior to the close, Cisco and
Sourcefire will continue to operate as separate companies. Upon completion
of the transaction Sourcefire employees will join the Cisco Security Group
led by Christopher Young.
Sourcefire was founded in 2001 and completed its initial public offering in
2007. The company is based in Columbia, MD, an area widely recognized as a
center of excellence for security innovation, and has more than 650
employees worldwide. For the full year ended December 31, 2012, Sourcefire
reported revenue of $223.1 million, an increase of 35 percent
year-over-year.
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