Networking equipment maker Cisco Systems has bought
security technology developer Riverhead Networks for $39m in
cash.
The privately held company specialises in software that protects
against attacks on corporate and telecommunications networks, such
as distributed denial-of-service (DDoS) attacks, according to Janey
Hoe, Cisco's director of business development.
"Riverhead has unique technology that's patented. It can
eliminate attacks based on malicious network behavior; learning the
profiles of what's normal, detecting problems and being able to
take action and respond quickly," she said.
Cisco already holds a 10% stake in Riverhead Networks and will
be buying the remaining company shares in a deal that is expected
to close by the end of next month, according to Jeff Platon,
Cisco's senior director of product and technology marketing.
The purchase of Riverhead Technology continues Cisco's move to
position itself as a provider of secure networking products.
On 12 March, Cisco announced its intention to purchase SSL
(secure sockets layer) VPN (virtual private network) technology
company Twingo Systems for $5m in cash, and last year it acquired
network security software provider Okena for $154m.
"These acquisitions are all part of our strategy of bringing
together various, serious components and technologies that support
against threats that are known and unknown," Platon said.
"Customers will see a financially stable organisation that can
enable enterprise and service provider customers to build
intelligent networks that are also integrated with security for
threats against business processes and services."
Similar acquisitions in the future can be expected, he
added.
Cisco will, initially, take Riverhead's existing products and
then integrate that technology into Cisco's secure global networks
product and service line, Hoe said.
Riverhead, with 44 employees, will become part of Cisco's
internet switching business unit. Cisco said, it will try and keep
job cuts to a minimum.
Laura Rohde writes for IDG News Service