Cisco Systems Inc. (NASDAQ: CSCO) announced on Tuesday, June 30, 2015 that it is planning to buy OpenDNS, the cloud security company for $635 million. Cisco is going to pay the amount in cash to the privately held OpenDNS, located in San Francisco. The deal is primarily taking place because Cisco wants to expand its security business.
OpenDNS soon to become a part of Cisco Systems Inc.
Cisco Systems on a company buying spree
Lately, Cisco Systems seems to be on buying spree, as it is investing on a number of security offering companies. Cisco has already bought Neohapsis, a security advisory company in the beginning of this year. The amount is not known for this deal. Moreover, in 2014, Cisco had acquired ThreatGRID, a malware analysis company. The company mentions that these acquisitions are a part of its major plan to expand its business and take care of any sorts of cyber threats at the same time.
OpenDNS is a company that provides cloud-based network security service. It mainly creates software to block any online threat such as phishing, botnets, malware or cyber-attacks. In May 2014, Cisco had invested $35 million in OpenDNS for the development of security programs. Cisco mentioned in the announcement that the acquisition of OpenDNS will be completed in the first quarter of fiscal year 2016.
Cisco’s chief technology and strategy officer, Hilton Romanski, said during the announcement:
“As more people, processes, data and things become connected, opportunities for security breaches and malicious threats grow exponentially when away from secure enterprise networks. OpenDNS has a strong team with deep security expertise and key technology that complements Cisco’s security vision. Together, we will help customers protect their extended network wherever the user is and regardless of the device.”
After the acquisition, OpenDNS will join the Cisco Security Business Group. The group is led by David Goeckeler, senior vice president and general manager of Cisco Systems.