Cisco To Buy Sourcefire For $2.7 Bln Cash - Quick Facts

(RTTNews) - Cisco Systems, Inc. (CSCO) has agreed to acquire Sourcefire (FIRE), a provider of intelligent cybersecurity solutions, pursuant to which both the firms would combine their products, technologies and research teams to provide continuous and pervasive advanced threat protection across the entire attack continuum, before, during and after an attack, as well as from any device to any cloud.

According to the deal, Cisco would pay $76 per share in cash in exchange for each Sourcefire share and assume outstanding equity awards for an aggregate purchase price of about $2.7 billion, including retention-based incentives. The acquisition has been approved by the board of each company.

The acquisition, which may close in the second half of calendar year 2013, is expected to be slightly dilutive to non-GAAP earnings in fiscal 2014 due to normal purchase accounting adjustments and integration costs. Upon the closing of the transaction, Cisco would include Sourcefire into its guidance going forward. Prior to the close, Cisco and Sourcefire would continue operating as separate companies. Following completion, Sourcefire employees would join the Cisco Security Group led by Christopher Young.

Founded in 2001, Sourcefire completed its initial public offering in 2007.