Cisco to buy cybersecurity firm Sourcefire for $2.7 billion

Tuesday, 23 Jul 2013 | 9:26 AM ET
Getty Images

Cisco Systems said Tuesday it will buy software maker Sourcefire for about $2.7 billion to increase its network security offerings.

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.

Cyberthreat Weekly Recap: Week of July 12
CNBC's Brian Sullivan reports that once again cybersecurity is a topic at talks between the US and China. Also, an invasion of the living dead? In light of a Montana television station's emergency alert system being hacked in February, a new report says emergency alert servers are vulnerable.

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.

Cisco has lost market share in network security over the past few years to smaller, more innovative rivals such as Juniper Networks, Check Point Software Technologies, and Palo Alto Networks.

It fell behind in Web applications, social media and video streaming that call for more complex security protection than traditional firewalls provide.

—By Reuters.

  Price   Change %Change


Contact Technology


    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.