This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Cisco Acquires Sourcefire for $2.7B

Tuesday's transaction is expected to close by year's end, pending regulatory approval. After completion, Sourcefire employees are expected to join Cisco's security unit and will report to the division's senior vice president, Christopher Young. Demand for Web security companies has increased of late as worries about cyber hacking continue to mount. In May, Vista Equity Partners agreed to acquire Websense for $907 million in cash and Intel's (INTC) McAfee Inc. unit bought Finnish firewall maker Stonesoft for $389 million in cash.

Software conglomerates including San Jose, Calif.-based Cisco, which is led by chief executive John Chambers, and rivals Juniper Networks (JNPR) and IBM (IBM) are expected to be on the hunt for additional deals in the security space. In January, Cisco acquired Prague-based cybersecurity company Cognitive Security s.r.o for undisclosed terms.

Cisco shares opened 5 cents higher on Tuesday morning, to $25.75, with its market capitalization near $138 billion. n

--Chris Nolter contributed to this report.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CSCO $28.82 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs