The acquisition followed yesterday’s unveiling of more than a dozen products by Cisco to delve deeper into Internet of Things.
Cisco announced its intent to buy cloud security company OpenDNS for $635 million this morning.
The goal of this acquisition is to boost Cisco’s Security Everywhere approach by adding broad visibility and threat intelligence from the OpenDNS cloud-delivered platform.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd.
According to market research firm MarketsandMarket, it is estimated that the global cybersecurity market is set to grow to $170.21 billion in the next five years to 2020 from the present $106.32 billion, reflecting an increase of 60% in the next half a decade.
Cisco, which has acquired dozens of companies over the years, is transitioning towards high-end switches and routers and investing in new products such as data analytics software and cloud-based tools for data centres. However, David Ulevitch, OpenDNS founder and chief executive, wrote in an employee note posted on the company’s website that he will stay on.
OpenDNS was founded by entrepreneur David Ulevitch in 2005 as an alternative to those ISP-specific DNS services that could offer faster, more reliable service.
The combination of the two companies is meant to provide threat protection before, during and after an attack. These figures were provided by the company itself past year.
“We had tens of millions of users from start in 2006”, he said. He further explained at that time that OpenDNS enterprise product which launched in 2009 functioned to allow good traffic and block traffic that was not acceptable, thereby performing as a secured layer for a user utilizing the internet.
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco and its customers from completing the acquisition, and plans regarding OpenDNS personnel. Cisco is committed to OpenDNS’ consumer and enterprise DNS services.
“We will carry this passion with us as we transition to become a part of Cisco”. Of the 500 IT and security professionals surveyed, 23 percent acknowledged that their companies had no controls to prevent users on unauthorized devices from connecting to their networks, the report noted.
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