Cisco Systems acquires ScanSafe

Cisco Systems, Inc., a designer and manufacturer of communications, network and information technology related products, has acquired ScanSafe, Inc., a provider of web security-as-a-service. Both the companies are based in the US.

Announcement (October 27, 2009):

Cisco is planning to acquire ScanSafe for approximately $183 million in cash and retention-based incentives.

Upon completion, the ScanSafe team will become a part of Cisco's Security Technology Business Unit (STBU). The transaction is expected to close in the second quarter of 2010.

Earlier, ScanSafe had secured venture funding from Montagu Newhall Associates, Inc., Balderton Capital Management (UK) LLP and Scale Venture Partners (formerly BA Venture Partners).

Brunswick Group LLP is acting as PR advisor, while Fenwick & West LLP is acting as legal advisor to Cisco.

Deal Value (US$ Million) 183
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Completed: 2009-12-07

Deal Participants

Target (Company)   ScanSafe, Inc.
Acquirer (Company) Cisco Systems, Inc.

Deal Rationale

The acquisition will enable Cisco to execute its vision to build a borderless network security architecture that combines network and cloud-based services for advanced security enforcement. The acquisition brings together the Cisco IronPortTM high-performance Web security appliance and ScanSafe's SaaS Web security service. This combination will expand Cisco's security portfolio to offer superior on-premise, hosted and hybrid-hosted web security solutions.

Related terms: acquisition, advisor, architecture, business, communications, information technology, legal, manufacturer, products, security, technology, web