Security is an everpresent concern when it comes to internet infrastructure, and hence it has been the focus of many an M&A move. Today, the industry giant Cisco made another move in this arena, announcing its intent to acquire Duo Security.
Michigan-based Duo Security specializes in user and device authentication, vetting what wants to connect to one's applications and networks and thus reducing exposure to cyber attacks. They had raised some $118M in venture funding, and were said to be generating over $100M in annualized revenue earlier this year. Cisco will be integrating that technology with its other network and cloud security platforms, adding to the portfolio and talent pool they have already been assembling. Cisco's security business generates some $2.34B or so of annualized revenue currently.
Cisco will be paying $2.35B in cash and assumed equity awards to acquire Duo. The deal is expected to close during the first quarter of Cisco's fiscal 2019, which works out to October 31, 2018 (I think). Duo Security CEO and Co-founder Dug Song will continue to run the company as a division of Cisco within the company's Networking and Security Business.