Cisco to Buy Duo Security for $2.35B
SAN JOSE, Calif. – Cisco today announced its intent to acquire privately-held Duo Security, headquartered in Ann Arbor, Mich. Duo Security is the leading provider of unified access security and multi-factor authentication delivered through the cloud. Duo Security's solution verifies the identity of users and the health of their devices before granting them access to applications – helping prevent cybersecurity breaches. Integration of Cisco's network, device and cloud security platforms with Duo Security's zero-trust authentication and access products will enable Cisco customers to easily and securely connect users to any application on any networked device.
Under the terms of the agreement, Cisco will pay $2.35 billion in cash and assumed equity awards for Duo Security's outstanding shares, warrants and equity incentives on a fully-diluted basis.
Business-critical data and applications today are accessed by customers, partners and employees from a multitude of locations and networks, both secure and open, using company-issued and personal devices. Attackers know that one of the most effective ways to access enterprise systems is through compromising user passwords or devices. According to the 2017 Verizon Data Breach Report, the majority of hacking related breaches involve stolen or weak passwords. Acknowledging this, Cisco and Duo Security are closely aligned in the approach of designing infrastructure for the extended enterprise where users, devices and applications are the center of the modern security architecture.
The acquisition of Duo Security will:
The acquisition is expected to close during the first quarter of Cisco's fiscal year 2019, subject to customary closing conditions and required regulatory approvals. Duo Security, which will continue to be led by Song, will join Cisco's Networking and Security business led by EVP and GM David Goeckeler.