Cisco To Buy OpenDNS Cloud Security Firm for $635M

With security threats growing across a wider range of devices, Cisco is aiming to boost its emphasis on "security everywhere" through its acquisition of the San Francisco-based firm OpenDNS. Valued at $635 million, the deal is expected to close in the first quarter of the 2016 fiscal year.

Founded in 2006, OpenDNS launched its line of cloud-based Umbrella security products in 2012. Combined with the company's predictive threat intelligence platform, Security Graph, those products are aimed at providing "anywhere, anytime" security for the growing Internet of Things.

OpenDNS's offerings will fit into Cisco's current focus on services for enterprises dealing with ever-larger numbers of devices on their networks. With an estimated 50 million devices predicted to be connected to one another by 2020, the risks for security breaches and other attacks will only keep growing, the company said.

Building on a $35M Investment

The acquisition of OpenDNS will improve Cisco's ability to provide "enhanced visibility and threat protection for unmonitored and potentially unsecure entry points into the network," Hilton Romanski (pictured), Cisco's senior vice president and head of business development, noted in a blog post Tuesday.

OpenDNS' cloud platform supports more than 65 million users a day, said Romanski, adding that the acquisition will boost Cisco's existing technologies with "broad visibility and predictive threat intelligence." Members of the OpenDNS team will move into Cisco's Security Business Group, headed by Senior Vice President and General Manager David Goeckeler.

Cisco last year was one of several investors to provide $35 million in funding to OpenDNS to help the company speed adoption of its cloud-based services. Other recent security acquisitions by Cisco include SourceFire, which was purchased for $2.7 billion in 2013, and ThreatGRID, acquired for an undisclosed amount and integrated into Cisco's security portfolio last year.

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