Cybersecurity

Cisco Just Bought a Cloud-Based Security Company for $635 Million

Cisco Just Bought a Cloud-Based Security Company for $635 Million
Image credit: Luke Gattuso | Flickr

Cisco Systems said on Tuesday it would buy OpenDNS, a privately held cloud-based security company, for $635 million in cash and equity awards to beef up its security business.

Cisco has been buying a number of security companies to boost the business in the face of fast-growing, sophisticated cyber attacks.

OpenDNS provides network security services that block attacks, as well as malware, botnets and phishing threats. Cisco was part of a group that invested $35 million in OpenDNS in May last year.

The acquisition of San Francisco, California-based OpenDNS is expected to close in the first quarter of fiscal year 2016, Cisco said in a statement.

Cisco bought security advisory firm Neohapsis for an undisclosed sum this year and malware analysis company ThreatGRID in 2014.

The global cybersecurity market is estimated to grow to $170.21 billion by 2020 from $106.32 billion in 2015, according to market research firm MarketsandMarket.

Cisco's shares were up 0.76 percent at $27.75 in premarket trading.

(Reporting by Abhirup Roy and Anya George Tharakan in Bengaluru; Editing by Savio D'Souza)

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