CloudLock Inc., a privately held cloud security company based in Waltham, Massachusett is the latest startup to be acquired by Cisco. The startup helps companies to monitor and control how employees are using cloud services.
The $293 million deal for the closely held company includes a combination of cash and assumed equity awards, Cisco said. The company agreed to pay additional retention incentives to CloudLock employees who join Cisco.
The acquisition will significantly boost Cisco’s capabilities, particularly in the area of cloud security. CloudLock will be joining Cisco’s networking and security business group under Senior Vice President David Goeckeler.
Cisco, the biggest maker of networking hardware, has used acquisitions to help build a major sideline in security software and services. It has in the past acquired Sourcefire Inc., a maker of security hardware and software for $2.7 billion in 2013, and OpenDNS, which uses internet domain name servers to help block cyberattacks for $635 million in 2015.
CloudLock developed its technology to address the widening use of cloud-based apps from companies such as Salesforce.com Inc. and Dropbox Inc., which can hold sensitive company files. Its online software helps track how employees are using such services and enforce security policies, such as limiting how they access and transfer files.
Speaking on the topic, Rob Salvagno, vice president of Cisco Corporate Development said,
“CloudLock brings a unique cloud-native, platform and API-based approach to cloud security which allows them to build powerful security solutions that are easy to deploy and simple to manage.”
The news was quite well received by the stock markets as well and Cisco Systems shares rose almost 1.5% to $27.71 in morning trading in New York.
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