Cisco on Tuesday announced its intention to acquire network security company Lancope, Inc. for $452.5 million in an effort to boost its threat defense capabilities.
Lancope is an Alpharetta, GA.-based company that specializes in security intelligence, threat visibility, and network behavior analytics. These capabilities are part of a solution called StealthWatch which, according to Lancope, is currently used to protect the networks of more than 800 enterprises, universities, and government agencies from around the world.
Cisco and Lancope have been in a commercial partnership for many years, and now the networking giant has decided to acquire the network security firm to advance its Security Everywhere strategy.
“As enterprises digitize, security challenges rapidly evolve. Real time visibility and understanding of the behavior of every machine or device on the network becomes critical in adapting the ability of enterprises to identify and respond to the next wave of cyber threats,” commented Rob Salvagno, vice president of Cisco Corporate Development. “Cisco is committed to helping organizations defend their networks and devices. Together with Lancope, our combined solutions can help turn a customer’s entire network into a security sensor.”
“Like our customers, Cisco clearly recognizes Lancope’s ability to unlock security intelligence embedded in the network. Our two companies enjoy a shared ideology of the network as the source of truth, and the similarity in our cultures has made this union especially appealing,” said Mike Potts, CEO of Lancope.
Cisco is prepared to pay $452.5 million in cash and assumed equity awards, and additional incentives for Lancope employees who remain on board. After the acquisition is completed, estimated for the second quarter of Cisco’s fiscal year 2016, the Lancope team will join Cisco’s Security Business Group.
The announcement comes less than a month after Cisco agreed to acquire UK-based security consultancy Portcullis. Cisco also revealed its intention this summer to acquire DNS and enterprise security services provider OpenDNS for $635 million.