Cisco Completes $2.7 Bln. Acquisition Of Sourcefire - Quick Facts

(RTTNews) - Networking gear maker Cisco Systems Inc. (CSCO) said Monday it has completed the $2.7 billion acquisition of Sourcefire (FIRE), a leader in intelligent cybersecurity solutions. The deal was initially announced in July.

Under the terms of the agreement, Cisco is paying $76 per share in cash in exchange for each share of Sourcefire and assuming outstanding equity awards for an aggregate purchase price of about $2.7 billion, including retention-based incentives.

Cisco expects the acquisition to be slightly dilutive to non-GAAP earnings in fiscal year 2014 due to normal purchase accounting adjustments and integration costs.

Cisco makes the routers and switches that direct computer and telecommunications traffic over corporate networks and the Internet.

The deal will enable Cisco to accelerate delivery of its security strategy of defending, discovering, and remediating advanced threats. Cisco noted that with research teams, increased intelligence and expanded threat protection, customers will benefit from continuous security in more places across the network.

Columbia, Maryland-based Sourcefire was founded in 2001 and completed its initial public offering in 2007. The company has more than 650 employees worldwide. For the full year ended December 2012, Sourcefire reported revenue of $223 million, an increase of 35 percent year-over-year.

The closure of the deal will result in all shares of Sourcefire to be delisted from the NASDAQ stock market by the close of business today.