Cisco today announced its intention to buy Ann Arbor, MI-based security firm, Duo Security. Under the terms of the agreement, Cisco is paying $2.35 billion in cash and assumed equity awards for Duo.
Duo Security was founded in 2010 by Dug Song and Jonathan Oberheide and went on to raise $121.M through several rounds of funding. The company has 700 employees with offices throughout the United States and in London, though the company has remained headquartered in Ann Arbor.
Co-founder and CEO Dug Song will continue leading Duo as its General Manager and will join Cisco’s Networking and Security business led by EVP and GM David Goeckeler. Cisco in a statement said they value Michigan’s “resources, rich talent pool, and infrastructure,” and remain committed to Duo’s investment and presence in the Great Lakes State.
The acquisition feels like a good fit for Cisco. Duo’s security apparatus lets employees use their own device for adaptive authentication. Instead of issuing key fobs with security codes, Duo’s solution works securely with any device. And within Cisco’s environment, the technology should feel like a natural fit for CTOs looking for secure two-factor authentication.
“Our partnership is the product of the rapid evolution of the IT landscape alongside a modernizing workforce, which has completely changed how organizations must think about security,” said Dug Song, Duo Security’s co-founder and chief executive officer. “Cisco created the modern IT infrastructure, and together we will rapidly accelerate our mission of securing access for all users, with any device, connecting to any application, on any network. By joining forces with the world’s largest networking and enterprise security company, we have a unique opportunity to drive change at a massive scale, and reshape the industry.”
Over the last few years, Cisco has made several key acquisitions: OpenDNS, Sourcefire, Cloudlock, and now Duo. This latest deal is expected to close in the first quarter of Cisco’s fiscal year 2019.