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Cisco announces plan to acquire Duo
Posted on Friday, 03 August 2018 10:11
Cisco Systems has announced its intent to acquire Duo Security, a venture capital-backed cyber security firm, for about USD 2.35 billion in cash.
The company is looking to expand its networking strategy as part of the purchase, which should allow the group better serve customers trying to securely connect users to any application.
Duo Security claims to be a leading provider of unified access security that it delivers through a cloud-based platform to help verify the identity of users and their devices before granting access to applications to prevent cyber breaches.
The deal, which will expand Cisco’s offerings, is subject to regulatory approval and will complete during the first quarter of the acquiror’s fiscal 2019.
For the technology buyer, the transaction represents its largest since its USD 3.70 billion acquisition of performance monitoring software group AppDynamics last year.
One of its latest purchases was BroadSoft, a US internet protocol telephony platform operator, for USD 1.90 billion in February.
A report by Reuters observed the deal comes amid a wave of acquisitions in the cybersecurity market as companies look to boost their offerings in the area and more businesses become the subject to breaches and attacks by criminals, spies and hacker activists.
Large corporations, including Facebook, have faced such problems.
In this case, the social media platform’s stock value plummeted USD 119.00 billion in one day, the most significant decline of any company on a US bourse in any 24-hour period, the Independent reported last month.
Dug Song, chief executive of Duo, said: “By joining forces with the world's largest networking and enterprise security company, we have a unique opportunity to drive change at a massive scale, and reshape the industry.”
Other deals announced in the sector as of late include AT&T’s agreement to acquire cybersecurity firm AlientVault last month for an undisclosed sum, while in June Splunk paid USD 120.00 million for VictorOps, a US-based data processer for security and Internet-of-Things challenges.
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