The deal is expected to close in the second quarter of fiscal 2016.
Based in Alpharetta, GA, Lancope provides network behavior analytics, threat visibility and security intelligence to help protect companies against cyber security threats.
"As enterprises digitize, security challenges rapidly evolve," VP of Cisco Corporate Development Rob Salvagno stated. "Real time visibility and understanding of the behavior of every machine or device on the network becomes critical in adapting the ability of enterprises to identify and respond to the next wave of cyber threats."
In September, researchers found that 200 of Cisco Systems' routers were infected with malware, Fortune said.
At the time, the company said that there were no reports of company data being stolen and that Cisco Systems and Shadowserver Foundation were working together to see how severe the infections were on its routers.
Overall, the networking giant is looking to ramp up its security business. Last year, it also acquired cybersecurity firm Sourcefirefor $2.7 billion, the Wall Street Journal reports.
Cisco Systems stock is declining 0.38% to $28.84 on Tuesday.
TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.97, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, CISCO SYSTEMS INC's return on equity exceeds that of both the industry average and the S&P 500.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: CSCO