Cisco Systems Inc. (NASDAQ: CSCO) announced today plans to acquire IronPort Systems Inc., a provider of e-mail, Web, and security management appliances, for about $830 million in cash and stock.
On Thursday, the San Jose Calif.-based Cisco said the purchase of the privately held firm would augment is existing network technologies, adding to the company's growing portfolio of security focused solutions.
We feel there is enormous potential for enhanced email and message protection solutions to be integrated into the existing Cisco Self-Defending Network framework, said Richard Palmer, senior vice president of Cisco's Security Technology Group. Using the network as a flexible platform to integrate IronPort's technologies, Cisco will be able to build new security applications as customers' demands evolve.
The 408 person IronPort team and product portfolio will operate as a business unit in Cisco's Security Technology Group, reporting to senior VP Richard Palmer.
Cisco anticipates this transaction will be neutral to its fiscal year 2007 earnings.
Cisco shares were up 67 cents, or 2.42 percent, in late afternoon trading on the Nasdaq exchange.