Cisco to Buy Sourcefire, a Cybersecurity Company, for $2.7 Billion

by MICHAEL J. DE LA MERCED, courtesy New York Times —

Paul Sakuma/Associated PressThe Cisco Systems data center in San Jose, Calif.

Cisco Systems agreed on Tuesday to buy Sourcefire, a provider of cybersecurity services, for about $2.7 billion in cash, in a reflection of the growing fervor for companies that can help guard against computer-based attacks.

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Under the terms of the deal, Cisco will pay $76 a share in cash, nearly 30 percent higher than Sourcefire’s closing price on Monday. The offer includes retention-based incentives for Sourcefire’s executives.

The deal is Cisco’s biggest since its $5 billion acquisition of NDS Group Ltd. last year.

Sourcefire, founded in 2001, has grown into a major cybersecurity provider – one that has rejected numerous takeover bids through the years. Last year, the company reported $5 million in profit on revenue $223.1 million.

In a statement, Cisco said that adding Sourcefire would give it a portfolio of next-generation security offerings.

“Buy has always been a key part of our build-buy-partner innovation strategy,” said Hilton Romanski, a Cisco vice president for corporate development. “Sourcefire aligns well with Cisco’s future vision for security and supports the key pillars of our security strategy.”