Networking specialist Cisco Systems is buying cyber security services company Sourcefire in a deal valued at $2.7bn (£1.8bn).
The acquisition follows a number of years in which Cisco has lost market share in network security to rivals, such as Juniper Networks and Check Point Software.
Cisco is paying a 28 per cent premium over the company’s market value at close of business yesterday evening.
The deal is expected to complete before the end of the year. On completion, Sourcefire will be incorporated into the Cisco Security Group, led by senior vice president Christopher Young.
“The notion of the ‘perimeter’ no longer exists and today’s sophisticated threats are able to circumvent traditional, disparate security products. Organisations require continuous and pervasive advanced threat protection that addresses each phase of the attack continuum,” said Young
“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.”
Hilton Romanski, vice president of Cisco Corporate Development, welcomed the deal.
“Sourcefire aligns well with Cisco’s future vision for security and supports the key pillars of our security strategy,” he said.
“Through our shared view of the critical role the network must play in cyber security and threat defence, we have a unique opportunity to deliver the most comprehensive approach to security in the market.”
Sourcefire founder Marin Roesch added that the deal would give the security firm exciting new opportunities.
“Cisco’s acquisition of Sourcefire will help accelerate the realisation of our vision for a new model of security across the extended network,” he said.
“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.”