Cisco has acquired Sourcefire, a leader in intelligent cybersecurity solutions, forming a key parter of the company's 'build-buy-partner' innovation strategy.
After agreeing terms on the deal, the companies will combine products, technologies and research teams to provide advanced threat protection across the entire attack continuum and from any device to any cloud.
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.
Cisco says 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 organisations from dynamic threats.
"'Buy' has always been a key part of our build-buy-partner innovation strategy," says 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."
Sourcefire delivers security through continuous awareness, threat detection and protection, including next-generation intrusion prevention systems, next-generation firewalls, and advanced malware protection.
Cisco claims the acquisition adds a team with deep security DNA to Cisco and will accelerate delivery of the company's security strategy as a result.
"The notion of the 'perimeter' no longer exists and today's sophisticated threats are able to circumvent traditional, disparate security products," says Christopher Young, senior vice president, Cisco Security Group.
"Organisations require continuous and pervasive advanced threat protection that addresses each phase of the attack continuum.
"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."
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, the company will include Sourcefire into its guidance going forward but prior to the close, both will continue to operate as separate companies. Upon completion of the transaction Sourcefire employees will join the Cisco Security Group led by Christopher Young.
"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 CTO, 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."
Sourcefire was founded in 2001 and completed its initial public offering in 2007. The company is based in Columbia, MD, with over 650 employees worldwide.