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Microsoft Agrees to Buy Security Software Firm RISKIQ

Terms of Microsoft's deal weren’t disclosed. But a knowledgeable source told Bloomberg that it would be more than $500 million.

Microsoft  (MSFT) - Get Microsoft Corporation (MSFT) Report announced Monday it has agreed to acquire RiskIQ, a security software firm, to help defend customers against cyberattacks.

Terms of the deal weren’t disclosed, but a knowledgeable source told Bloomberg that it would be more than $500 million in cash.

“Organizations are increasingly using the cloud to reimagine every facet of their business, … and customers are challenged with the increasing sophistication and frequency of cyberattacks,” Eric Doerr, Microsoft vice president for cloud security, wrote on the company’s web site.

Microsoft is buying San Francisco-based RiskIQ “to help our shared customers build a more comprehensive view of the global threats to their businesses, better understand vulnerable internet-facing assets, and build world-class threat intelligence,” he said.

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“RiskIQ helps customers discover and assess the security of their entire enterprise attack surface — in the Microsoft cloud, AWS, other clouds, on-premises, and from their supply chain.

With more than a decade of experience scanning and analyzing the internet, RiskIQ can help enterprises identify and remediate vulnerable assets before an attacker can capitalize on them.”

The news didn’t have much impact on Microsoft stock. It recently traded at $277.33, down 0.32%. The Redmond, Wash., company's stock has climbed 28% in the past six months amid stellar financial performance.

Last month, Microsoft named Chief Executive Satya Nadella as chairman too, bucking the corporate governance trend of separating the two roles.

“It comes as a significant vote of confidence for Nadella, who has held the CEO role since 2014 and overseen a remarkable resurgence at Microsoft,” David Pogemiller wrote on Boardroom Alpha.

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