Jan 04 2007
Cisco announced a definitive agreement to acquire privately held IronPort System, a leading email and Web security company, for $830 million. IronPort, whose customers include Cisco and 38 of the top 100 companies in the US, provides a full suite of industry-leading messaging security applications focusing on enterprise spam and spyware protection.
Cisco System Inc (Nasdaq : CSCO, quote) currently commands a 38% share 
of the security market, followed by Check Point Software Technologies Ltd (Nasdaq : CHKP, quote) and Juniper Networks Inc (Nasdaq : JNPR, quote) at less than ten percent each. The addition of IronPort will enhance Cisco’s total security solution offerings in achieving a unified IP network for email, voice messaging, instant-messaging, and security. The deal will enable Cisco to compete directly with Symantec Corporation (Nasdaq : SYMC, quote), the world’s largest maker of security software especially in the anti-spam market, which according to Gartner Research is growing at 42% annually. In April, Cisco purchased SyPixx Networks Inc for $51 million that enabled it to deliver video surveillance as part of an Intelligent Converged Environment.
of the security market, followed by Check Point Software Technologies Ltd (Nasdaq : CHKP, quote) and Juniper Networks Inc (Nasdaq : JNPR, quote) at less than ten percent each. The addition of IronPort will enhance Cisco’s total security solution offerings in achieving a unified IP network for email, voice messaging, instant-messaging, and security. The deal will enable Cisco to compete directly with Symantec Corporation (Nasdaq : SYMC, quote), the world’s largest maker of security software especially in the anti-spam market, which according to Gartner Research is growing at 42% annually. In April, Cisco purchased SyPixx Networks Inc for $51 million that enabled it to deliver video surveillance as part of an Intelligent Converged Environment. IronPort Systems, a company which posted $25 million in Q2 billings, specializes in anti-spam solution which has proven to be effective with the wide deployment especially in the internet service provider (ISP) sector. I once evaluated this product when I was in the consulting services to an ISP and the customer just loves it – the only setback: it’s rather expensive as it’s an enterprise-level appliance tailored for niche markets.
# TIP: Despite numerous purchases (2006 saw the network giant completed nine deals, each less than $100 million in value) to enhance its’ range of security solutions offerings, the stock performance of CSCO is rather boring. I would give it a pass.
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January 4th, 2007 by financetwitter
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