Cisco on Tuesday said it plans to acquire cybersecurity firm Lancope for $452.5 million.
Based in Alpharetta, Georgia, privately held Lancope specializes in network behavior analytics, threat visibility and security intelligence -- features Cisco said it plans to use to bolster its Security Business Group as well as the company's "security everywhere" strategy.
Cisco and Lancope have been commercial partners for some time, with Lancope's threat visibility technology being used to turn a Cisco-run network into a security sensor. But coming together under one organization will allow the companies to integrate services more organically and detect network threats more rapidly.
Under the terms of the deal, Cisco will pay $452.5 million, as well as "retention-based incentives" for Lancope employees who join Cisco.
The price tag is not insignificant even for Cisco, but given the company's focus on securing its networks for the Internet of Things, the ROI is fairly easy to map out. With over 50 billion devices expected to become connected by 2020, Cisco is expecting a ramp up in network breach attempts, as threat actors will have more opportunities to break corporate security.
"As enterprises digitize, security challenges rapidly evolve," said Rob Salvagno, VP of Cisco Corporate Development, in a statement. "Real time visibility and understanding of the behavior of every machine or device on the network becomes critical in adapting the ability of enterprises to identify and respond to the next wave of cyber threats."
Cisco said the Lancope deal builds on other recent security acquisitions, including OpenDNS, Portcullis and Neohapsis.
Announced in June, the $635 million OpenDNS deal was aimed at accelerating the development of the Cisco Cloud Delivered Security Portfolio.