Cisco Systems Inc said on Thursday it would buy Duo Security, a venture capital-backed cybersecurity company, for $2.35 billion in cash, as it seeks to expand its offerings in cloud computing.
The deal is the biggest acquisition for Cisco since its $3.7-billion purchase of business performance monitoring software company AppDynamics last year, and its largest in the cybersecurity sector since its $2.7-billion takeover of Sourcefire in 2013, reports Reuters.
Duo’s platform allows users to verify their identity with a two-step authentication and its investors include Index Ventures, Workday, Redpoint Ventures and True Ventures. The deal is expected to close in the first quarter of Cisco’s fiscal 2019.
Cisco, the world’s largest networking gear maker, has been making efforts to transform itself into a software-focused company.
With its traditional business of making switches and routers struggling, Cisco has been focusing on high-growth areas such as security, the Internet of Things and cloud computing. Shares of the company were down about 1 percent at $41.45 before the bell.