Cisco to Buy Cloud-Security Provider CloudLock $293 Million
June 28 2016 - 11:03AM
Dow Jones News
By Brittney Laryea
Cisco Systems Inc. on Tuesday said it was adding to its
cloud-security portfolio by agreeing to buy privately held
CloudLock Inc. for $293 million in cash and equity.
The deal's terms also included retention incentives for
CloudLock employees who join Cisco, the biggest maker of networking
gear.
CloudLock, based in Waltham, Mass., specializes in
cloud-security technology for businesses. The company will join
Cisco's networking and security business group under Senior Vice
President David Goeckeler.
The companies expect the deal to close by November.
According to data from researcher Gartner Inc., global corporate
spending on public cloud services is expected to grow 16% to $204.2
billion this year, compared with 13.8% growth in 2015.
The increase reflects a new willingness among big companies,
even those in particularly security-minded industries such as
finance, to move beyond the corporate data center and run their
software applications, data storage and processing over the
internet on shared resources, in a model known as the public
cloud.
Cisco Systems shares rose 1.5% to $27.71 in morning trading in
New York amid a broader market rally.
Write to Brittney Laryea at Brittney.Laryea@wsj.com
(END) Dow Jones Newswires
June 28, 2016 10:48 ET (14:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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