October 8, 2013 - 12:40 AMT
PanARMENIAN.Net - Cisco has completed the acquisition of cybersecurity firm Sourcefire for $2.7 billion, ZDNet reports.
On Monday, the tech giant announced the closing of the deal, which will give Cisco a more substantial advanced threat protection portfolio -- bolstering its weakening position in network security as cyberthreats evolve and become more sophisticated, which forces firms to quickly catch up to protect their clients.
Originally announced on July 23, the acquisition was quickly approved by both Cisco and Sourcefire's board of directors, and was expected to close this year.
Under the terms of the agreement, Cisco is paying $76 per share in cash in exchange for each share of Sourcefire and assuming outstanding equity awards, for an aggregate purchase price of approximately $2.7 billion. All shares of Sourcefire will be delisted on the NASDAQ stock market.
Sourcefire employees will join the Cisco Security Group. In addition, Martin Roesch, founder and chief technology officer of Sourcefire, will become vice president and chief architect for the security department, reporting to Christopher Young, senior vice president of the Cisco Security Group.
Young said: "To truly protect against all possible attack vectors, our focus is to examine the nature of modern networked environments and devices and to defend them by deeply understanding and analyzing the mindset of the attackers. Cisco's portfolio of integrated solutions support this focus by delivering unmatched visibility and continuous advanced threat protection, allowing customers to act smarter and more quickly -- before, during, and after an attack."
Columbia, MD-based Sourcefire was founded in 2011 and has over 650 employees worldwide. The firm specializes in security applications suitable for modern-day threats, mobile security and advanced persistent threats (APT). APT attacks which continually harass a target in order to bring down a service or steal valuable corporate or personal information, and remain a popular method among more sophisticated hacking groups.
The purchase of Sourcefire is likely to be an important step for Cisco, as the company has lost valuable marketshare in recent years after failing to provide the same business protection as rivals Palo Alto Networks and Check Point. The rival companies are better equipped with next-generation security solutions including the provision of sophisticated firewalls and cloud computing defense, ZDNet says.
In Cisco's Q4 earnings, the tech giant reported fourth quarter earnings of $2.3 billion on revenue of $12.4 billion. Sourcefire reported revenue of $223.1 million in 2012.