Cisco to buy cybersecurity firm Sourcefire for $2.7 billion
Following the report, Sourcefire stock surged and Cisco shares were roughly flat.
Cisco will pay $76 per share for the company, a premium of 28.6 percent over its closing price on Monday of $59.08.
The network equipment company said the deal would likely close during the second half of 2013 and it expects the acquisition to be slightly dilutive to non-GAAP earnings in fiscal year 2014.
It fell behind in Web applications, social media and video streaming that call for more complex security protection than traditional firewalls provide.