Cisco to Buy Network Security Company OpenDNS

Cisco Systems Inc. on Tuesday said it agreed to buy privately-held network security company OpenDNS for $635 million, the latest move to boost its security business.

The Silicon Valley networking giant expects to complete the transaction in the first quarter of next year. The deal comprises cash and assumed equity awards, plus retention-based incentives for OpenDNS.

OpenDNS, based in San Francisco, protects corporations, schools and households from attacks and malware through cloud-delivered security services. The business will fold into Cisco's security business group.

Combining OpenDNS's visibility, predictive threat intelligence and cloud platform with enhance Cisco's security capabilities, the company noted.

Last year, Cisco acquired cybersecurity firm Sourcefire for $2.7 billion and also bought malware technology company ThreatGrid Inc. The security business represented about 4.3% of Cisco's overall revenue in 2014.

Write to Lisa Beilfuss at [e-mail]

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