Cisco Systems Inc (CSCO.O) said on Tuesday it would buy OpenDNS, a privately held cloud-based security firm, for $635 million, the latest move to boost its security business as cyber attacks increase in number and sophistication.
Cisco has been buying a number of security companies, which has made its relatively tiny security business one of its fastest growing areas in the past two years.
OpenDNS uses predictive intelligence to block malware, botnets and phishing threats that antivirus and firewalls miss. Cisco was a minority investor and was one of the backers that invested $35 million in OpenDNS in May last year. (bit.ly/1KqDMjV)
When Cisco buys stakes in startups, it often receives defensive rights that give it an edge to acquire companies it has invested in ahead of competitors.
The acquisition of OpenDNS is Cisco’s first after it said in May that veteran sales executive Chuck Robbins would replace John Chambers as CEO in July.
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Browsing Privacy: (Reuters) – Cisco to buy OpenDNS for $635 million to boost security business