Cisco’s acquisitions in the security space in 2015
In August 2015, Cisco (CSCO) announced the completion of its acquisition of OpenDNS, a private company providing threat protection for any device, for $635 million paid in cash. This acquisition could boost Cisco’s “Security Everywhere” approach by “adding broad visibility and threat intelligence from the OpenDNS cloud delivered platform.”
Cisco’s security business is already experiencing good growth as the chart above shows, and OpenDNS could drive that growth further.
Cisco intends to acquire Portcullis and Lancope
In October 2015, Cisco announced its intention to acquire Portcullis Computer Security, a UK (EWU) based firm that provides cybersecurity services to enterprise clients and the government sector. Its expertise includes identifying vulnerabilities, forensic testing, policy review and creation, first responder training to prepare for attacks, security awareness, as well as training and security posture audits. After this acquisition, Cisco could be able to provide strategic guidance to clients, helping them deal with difficult security challenges.
In November 2015, Cisco also stated that it was looking to acquire Lancope, a firm that provides “network behavior analytics, threat visibility and security intelligence to help protect companies against top cyber security threats.” This acquisition could enhance Cisco’s strategy of providing advanced threat protection across the “full attack continuum” or before, during, and after an attack.
With the above acquisitions, Cisco is looking to diversify its portfolio into a number of subsectors in the network security space, thereby catering to a large range of customers. It currently leads the network security market. Other firms in this space include CheckPoint (CHKP), Fortinet (FTNT), and Palo Alto Networks (PANW).