Cisco to buy security company
Boston: Cisco Systems has announced to buy the privately held Web security company ScanSafe for about $183 million, a move that will intensify its battle with security giants Symantec and McAfee. ScanSafe sells Web-based services that protect business computer networks and PCs from hackers, saving companies the cost of buying and installing software on their own equipment.
The top two security software companies, Symantec and McAfee, already sell such products, which are known as "cloud" services and whose sales are growing at a far faster clip than traditional software. As reported by Reuters, Cisco announced the deal on Tuesday, saying that the transaction is expected to close in its fiscal second quarter that ends in January 2010. The $183 million price tag includes cash and retention-based incentives, as per Cisco.
The deal helps Cisco expand its security portfolio, which includes email and Web security software company IronPort that it bought in 2007. San Jose, California-based Cisco has recently stepped up its pace of acquisitions. It announced deals for wireless equipment maker Starent Networks for $2.9 billion and Norwegian video conferencing maker Tandberg for $3 billion. Chief Executive John Chambers has said that he was looking to do more.
