Cisco to acquire net security software firm for $830 million
By Our Corporate Bureau | 04 Jan 2007
Mumbai: Top US network equipment maker Cisco Systems Inc will buy privately-held internet messaging and e-mail security firm IronPort Systems Inc for $830 million.
Cisco said the cash and stock deal is expected to close in the fiscal third quarter. The acquisition is also Cisco's fifth largest so far.
The acquisition is aimed at tapping the growing demand for anti-virus and anti-spam software. Cisco will also integrate niche technologies that complement its main product line of routers and switches that direct internet traffic.
Richard Palmer, senior vice president of Cisco said the deal would help it offer corporate clients a more comprehensive range of products. IronPort has proven spam filters like 'reputation filters', which block spam by examining a sender's record.
While companies can save on bandwidth by blocking spam it would also save employees the trouble of combing through unwanted e-mail messages.
Cisco said IronPort would function somewhat independently post acquisition, with CEO Scott Weiss remaining at the helm and headquarters staying in San Bruno, California, USA. Most of IronPort's 408 employees will also stay.
IronPort had been eyeing an initial public offer but decided on a deal with Cisco that would give the company access to a wider range of companies. The company's current client focus is on large technology, media and financial services firms.
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