Cisco Systems Inc. announced Thursday that it plans to buy
Internet security gateway appliance vendor IronPort Systems for
$830 million in cash and stock.
The San Jose, Calif.-based networking giant said it would use
the acquisition to add IronPort's email and messaging security
features into its security product set. The deal is expected to
close in the third quarter of Cisco's fiscal year 2007.
IronPort, based in San Bruno, Calif., was founded in 2000 and
has 3,000 customers including Cisco. IronPort's 400 employees would
continue to run as a separate business unit in Cisco's Security
Technology Group.
"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 in a
statement. "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 announcement marks Cisco's first acquisition of 2007. Cisco
had been on a shopping spree of late, making nine acquisitions last
year, including SyPixx Networks Inc, a software vendor that
specializes in IP network-based video surveillance systems.
Cisco also shelled out about $48 million in June to acquire both
Metreos and Audium in separate cash deals. Metreos added a
development environment and run-time platform for IP telephony,
while Audium adds similar technology for IP Contact Centers.
The company has also expanded partnerships, including business
software vendor SAP.
In December, Cisco updated its Integrated Services Router
platform, dropping in WAN optimization, a network analysis module
and a tunnel-less virtual private network.
IronPort also has been making moves. In November it acquired
email encryption vendor PostX Corp in an all stock transaction.
IronPort integrated PostX technology into its email scanning
capabilities in its appliances.