New York: Networking solution provider Cisco will acquire US-based cyber security solutions firm Sourcefire for about USD 2.7 billion in cash, a move aimed at boosting the company's network security business.
The deal, which has been approved by the boards of both firms, is expected to be completed in the second half of this year.
"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," Cisco said in a release.
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, it added.
"Under the terms of the agreement, Cisco will pay USD 76 per share in cash in exchange for each share of Sourcefire and assume outstanding equity awards for an aggregate purchase price of approximately USD 2.7 billion, including retention-based incentives," it said.
"The acquisition is expected to close during the second half of calendar year 2013, subject to customary closing conditions and regulatory reviews," NASDAQ-listed Cisco said.
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, it added.
"Sourcefire aligns well with Cisco's future vision for security and supports the key pillars of our security strategy," Cisco Corporate Development Vice President Hilton Romanski said.
Prior to the close of the deal, 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.
Founded in 2001, NASDAQ-listed Sourcefire is based in Columbia and has more than 650 employees worldwide. For the full year ended December 31, 2012, it reported revenue of USD 223.1 million, an increase of 35 percent year-on-year.
First Published: Wednesday, July 24, 2013, 17:40