Dive Brief:
- Cisco Systems Inc (CSCO.O) said last week it would buy OpenDNS, a privately held cloud-based security company, for $635 million in cash and equity awards.
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OpenDNS provides network security services that help block cyberattacks, malware, botnets and phishing threats.
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The acquisition is expected to close in the first quarter of fiscal year 2016
Dive Insight:
The purchase comes as no surprise to industry insiders. Cisco was part of a group that invested $35 million in San Francisco-based OpenDNS in May 2014, and Cisco has purchased several other security companies over the last year. The company is expected to continue investing in companies that will allow them to beef up their security and intrusion prevention services for the next several years.
The global cybersecurity market is estimated to grow to $170.21 billion by 2020, according to market research firm MarketsandMarket.
