Brief

Cisco acquires IronPort

Cisco has announced a definitive agreement to acquire IronPort Systems, a privately held company. IronPort is a provider of messaging security appliances, focusing on enterprise spam and spyware protection.

Under the terms of the agreement, Cisco will pay approximately $830 million in cash and stock. The acquisition is subject to various standard closing conditions and is expected to close in the third quarter of Cisco’s fiscal year 2007. Cisco anticipates this transaction will be neutral to its fiscal year 2007 non-GAAP earnings. Upon close of the transaction, the IronPort team and product portfolio will operate as a business unit in Cisco’s Security Technology Group, reporting into Richard Palmer, Senior Vice President, Cisco’s Security Technology Group.

Securing e-mail, messaging and other sorts of content is of primary concern to enterprises and other organisations. As email and messaging are indispensable applications in companies, the acquisition of IronPort’s messaging and Web security solutions extends Cisco’s security portfolio. The security products and technology from IronPort add a complementary suite of messaging solutions to Cisco’s threat mitigation, confidential communications, policy control, and management solutions.

“We feel there is enormous potential for enhanced e-mail and message protection solutions to be integrated into the existing Cisco Self-Defending Network framework,” said Palmer. He added, “Using the network as a flexible platform to integrate IronPort’s technologies, Cisco will be able to build new security applications as customers’ demands evolve.”

“Internet messaging threats continue to get more sophisticated, and IronPort has repeatedly delivered solutions,” said Scott Weiss, CEO of IronPort Systems. “Integrating IronPort’s messaging security technology with Cisco’s Self-Defending Network will enable a new level of defense for our customers.”

IronPort was founded in 2000 and has 408 employees based primarily in San Bruno, Calif.

Cisco is committed to retaining the relationships and go-to-market strategies that both companies have developed.