Cisco Announces Agreement to Acquire IronPort
Cisco extends the Self-Defending Network to Messaging and Web Security Services
SAN JOSE, Calif., January 4, 2007 - Cisco (NASDAQ: CSCO) - Cisco today announced a definitive agreement to acquire the privately held company, IronPort Systems, Inc. of San Bruno, Calif. IronPort is a leading provider of messaging security appliances, focusing on enterprise spam and spyware protection.
Securing email, messaging and other sorts of content is of primary concern to enterprises and other organizations. As email and messaging are leading applications for use over the Internet, the acquisition of IronPort's industry-leading messaging and Web security solutions is a natural extension to Cisco's security portfolio. The security products and technology from IronPort add a rich and complementary suite of messaging solutions to Cisco's industry-leading threat mitigation, confidential communications, policy control, and management solutions.
"We feel there is enormous potential for enhanced email and message protection solutions to be integrated into the existing Cisco Self-Defending Network framework," said Richard Palmer, senior vice president of Cisco's Security Technology Group. "Using the network as a flexible platform to integrate IronPort's technologies, Cisco will be able to build new security applications as customers' demands evolve."
"Internet messaging threats continue to get more sophisticated, and IronPort has repeatedly delivered industry leading solutions," said Scott Weiss, CEO of IronPort Systems. "Integrating IronPort's messaging security technology with Cisco's Self-Defending Network will enable a new level of defense for our customers."
Under the terms of the agreement, Cisco will pay approximately $830 million in cash and stock. The acquisition is subject to various standard closing conditions and is expected to close in the third quarter of Cisco's fiscal year 2007. Cisco anticipates this transaction will be neutral to its fiscal year 2007 non-GAAP earnings.
IronPort was founded in 2000 and has 408 employees based primarily in San Bruno, Calif.
Cisco is committed to retaining the relationships and go-to-market strategies that both companies have developed. Upon close of the transaction, the IronPort team and product portfolio will operate as a business unit in Cisco's Security Technology Group, reporting into Richard Palmer.
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Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.
This press release contains forward-looking statements, which are subject to safe harbors created under the U.S. federal securities laws. These statements include, among others, statements regarding the expected financial performance of Cisco (including projected earnings) following completion of the acquisition, Cisco's ability to achieve the expected benefits of extending its security portfolio as a result of the acquisition, Cisco's ability to build new security applications as customers' demands evolve, and the timeframe during which the acquisition is expected to close. Readers are cautioned that these statements regarding future events are based on the parties' current expectations and are necessarily subject to associated risks related to, among other things, obtaining IronPort's shareholder and regulatory approval of the acquisition, the potential impact on the business of IronPort due to uncertainty about the acquisition, the retention of employees of IronPort and the ability of Cisco to successfully integrate IronPort's market opportunities, technology, personnel and operations and to achieve expected strategic benefits. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. For information regarding other related risks, see the "Risk Factors" section of Cisco's most recent report on Form 10-K filed with the SEC on September 18, 2006 and of Cisco's subsequently filed Form 10-Q, each as it may be amended from time to time. Cisco undertakes no obligation to revise or update any forward-looking statements for any reason.