Acquisition Boosts Cisco's Cybersecurity Threat Defense Capabilities
SAN JOSE, CA--(Marketwired - Oct 27, 2015) - Today, Cisco (NASDAQ:CSCO, news, filings) announced its intent to acquire Lancope, Inc., a privately held network security company based in Alpharetta, GA. Lancope provides network behavior analytics, threat visibility and security intelligence to help protect companies against top cyber security threats.
As mobility expands and the number of connected devices increases, so do cyber criminals' skills and capacities to successfully breach a company and avoid detection. The one constant is that all connect through the network, which can be continuously monitored for changes in network behavior to detect and mitigate threats. Lancope's StealthWatch system identifies suspicious traffic patterns inside the network to detect a wide range of attacks. Through continuous network visibility, specialized threat analysis and protection, Lancope helps customers to monitor, detect, analyze and respond more quickly to modern security threats on enterprise networks.
Cisco and Lancope will advance Cisco's Security Everywhere strategy of providing advanced threat protection across the full attack continuum -- before, during and after an attack. With Lancope, Cisco's portfolio of security solutions adds an additional capability of network behavior analytics that extends protection further into the network.
"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," said Rob Salvagno, vice president, 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."
The Lancope team will join the Cisco Security Business Group organization led by David Goeckeler, senior vice president and general manager. Under the terms of the agreement, Cisco will pay $452.5 million in cash and assumed equity awards, plus additional retention based incentives for Lancope employees who join Cisco. The acquisition is expected to close in the second quarter of fiscal year 2016, subject to customary closing conditions including regulatory review.
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This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and its customers from completing the acquisition, and plans regarding Lancope personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the potential impact on the business of Lancope due to the uncertainty about the acquisition, the retention of employees of Lancope and the ability of Cisco to successfully integrate Lancope and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.