Alpharetta, Ga.-based Lancope provides network analytics and related tools designed to help protect companies from cyber security threats. The company's software helps companies sniff out suspicious traffic patterns and quickly respond to an attack.
The deal includes a cash payment by San Jose, Calif.-based Cisco for Lancope, with the buyer also committing to additional retention-based incentives for Lancope employees who join Cisco. The deal is expected to close during Cisco's fiscal second quarter, subject to regulatory review.
Cisco, of San Jose, Calif., said Lancope and its team would be folded into its security business group. The networking hardware giant has been investing heavily in security in recent years, in 2013 acquiring cybersecurity firm SourceFire Inc. for $2.7 billion and earlier this year buying OpenDNS, which helps route web traffic, for $635 million.
The company has also added assets including Portcullis and Neohapsis.
"Cisco is committed to helping organizations defend their networks and devices," said Rob Salvagno, Cisco vice president of corporate development. "Together with Lancope, our combined solutions can help turn a customer's entire network into a security sensor."
Shares of Cisco recently fell by down less than 1% at $28.83.
Network security is front of mind for businesses following a series of high-profile breaches that have left companies scrambling to make sure their data is safe. According to 451 Research, there were 82 security deals totaling $6.62 billion through the end of July, and with nearly 1,200 security firms still independent further consolidation seems inevitable.
Legacy tech firms including Cisco, IBM (IBM - Get Report) and EMC (EMC) are scrambling to add to their security assets, along with security consolidators including FireEye (FEYE - Get Report) and Palo Alto Networks (PANW - Get Report) .
Lancope was founded in 2000 by a Georgia Institute of Technology professor and received venture financing from Canaan Partners, Council Capital and H.I.G. Ventures.
-- Chris Nolter contributed to this report.