CSCO: Cisco Announces Agreement to Acquire IronPort

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.