Cisco reaches deal to acquire cybersecurity company Sourcefire for $2.37B in cash
July 23, 2013 by The Associated Press
Cisco says it’s reached a deal to buy computer network security company Sourcefire for about $2.37 billion in cash.
Cisco will pay $76 cash for each of the Columbia, Md.-based company’s shares. The price represents a 29 per cent premium over Sourcefire’s Monday closing stock price. Sourcefire shares jumped 29 per cent in premarket trading.
Cisco says the addition of Sourcefire will boost its own cybersecurity offerings.
The deal also includes the assumption of outstanding stock awards and retention-based incentives. The companies valued it at about $2.7 billion.
Cisco expects the deal, scheduled to close in the second half of 2013, to slightly reduce its adjusted profit for fiscal year 2014.
Sourcefire was founded in 2001 and went public in 2007. In 2012, its revenue jumped 35 per cent to $223.1 million.