Quick Overview: On Thursday, Cisco announced it intends to purchase Duo Security, an Ann Arbor based firm that is focused in the Cyber Security space. The acquisition is significant as they agreed to pay 2.35 billion in cash and assumed equity awards for Duo.
Duo Security currently has 700 employees and had raised in excess of 121 Million prior to the acquisition. Upon the successful completion of the acquisition, Dug Song will continue as its General Manager and will work under the Cisco Network and Security business that is run by EVP David Goeckeler. The intention is to continue running the business from its Michigan headquarters.
Technology to watch: Lately we have heard about some companies that have used USB keys for authentication and an improvement in intrusion detection and prevented data breaches. Well, Duo has the technology that allows this level of security without the physical keys and devices that are required to achieve greater security.
From Cisco: While not specific to the acquisition, Chuck Robbins made comments in the latest earnings call that were a clear indicator to the company’s continued investment in cyber security calling it foundational to everything that Cisco does “We continue to rapidly innovate in security to address key areas of concern for our customers such as security in their complex data centers,” Robbins said. The company developed technology to follow “any workload anywhere across physical and multi-cloud environments,” he said.
From Duo: “Our partnership is the product of the rapid evolution of the IT landscape alongside a modernizing workforce, which has completely changed how organizations must think about security,” said Dug Song, Duo Security’s co-founder and chief executive officer. “Cisco created the modern IT infrastructure, and together we will rapidly accelerate our mission of securing access for all users, with any device, connecting to any application, on any network. By joining forces with the world’s largest networking and enterprise security company, we have a unique opportunity to drive change at a massive scale, and reshape the industry.”
Analyst Take: This acquisition, on paper is a great fit and aligns well with the directional guidance that Chuck Robbins made in his prior earnings call and in past commentary to the press and analyst community. Cisco, as a critical components provider to the data center all the way out to the edge, has an important role in securing the network and often times that starts at the user. The acquisition of Duo provides another tool in the Cisco toolbox to make sure that a company’s data and critical applications are safer from the threat of cyber attack.