On Thursday, Cisco said that it will buy the cybersecurity company DUO Security for $2.35 billion.
Cisco Systems Inc., the worldwide leader in IT and networking said that it would buy Duo Security, a cybersecurity company based in Ann Arbor, Michigan, for $2.35 billion in cash and stocks. The aim of Cisco in buying Duo Security is to expand the company’s growing software, in which Duo Security will become a “business unit” under Cisco.
The former CEO of Duo, Dug Song will become the unit’s general manager. Respectively, the company will be expanding its access to prospective customers through this deal.
Along with this, the company also bought BroadSoft, a call center company, for $1.9 billion.
Robert Salvagno, vice president of Cisco’s corporate development said that the acquisition would be a move toward software and to more recurring revenue. The deal will expand Cisco’s security portfolio, as well as its intent based-networking.
Cisco has a long history in purchasing security startups and already acquired five security companies. According to Brad Zelnick, an analyst in Credit Suisse, Cisco is getting its act together in the cyber security market.
Chuck Robbins, CEO of Cisco, is tasked to take over vast legacy as the industry moves toward cloud computing and open-source software. The company’s share grows up to 9.3% this year, surpassing the S&P 500.
Cisco executives see Duo platform, a two-step authentication process a key for their customer to securely connect to applications. The company is trying their best to mold itself to more than just networking. The company also is devoting itself to the Internet of Things (IoT) and cloud-based applications.
Both Cisco and Duo refused to leave a comment in regards to the soon to take place acquisition.
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