Cisco Just Bought a Cloud-Based Security Company for $635 Million
Based in San Francisco, OpenDNS provides network security services that block attacks, malware and phishing threats.
This story originally appeared on Reuters
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)