Networking equipment provider Cisco plans to acquire one of its portfolio companies, US-based cybersecurity technology developer OpenDNS, for $635m in cash.
OpenDNS was originally launched as a domain name system (DNS) service, but has latterly pivoted into a business that produces cloud-based software which offers advanced threat protection technology that can be used on any device.
Cisco intends to incorporate the broad visibility and threat intelligence capabilities of OpenDNS’s platform to enhance its Cisco Security Business Group offering.
Cisco was previously among the investors in OpenDNS’s $35m series C round in May 2014, which also included Glynn Capital, Evolution Equity, Lumia Capital, Mohr Davidow Ventures, Northgate Capital, Sutter Hill Ventures, Greylock Partners and Sequoia Capital.
OpenDNS has raised approximately $51.3m in venture funding since it was founded in 2005, including seed funding from Minor Ventures.
Hilton Romanski, chief technology and strategy officer of Cisco, said: “As more people, processes, data and things become connected, opportunities for security breaches and malicious threats grow exponentially when away from secure enterprise networks.
“OpenDNS has a strong team with deep security expertise and key technology that complements Cisco’s security vision. Together, we will help customers protect their extended network wherever the user is and regardless of the device.”
In addition to the $635m cash payment, the deal also assumed equity awards. It is expected to close in early 2016.