Cisco Extends Security Portfolio with ScanSafe Acquisition

Cisco announced the acquisition of hosted-security vendor ScanSafe today. To acquire ScanSafe, Cisco will part with $183 million in cash and retention-based incentives. If all goes according to plan, the deal will close in Cisco’s fiscal second quarter of 2010, which equates to the calendar year’s first quarter.

Based in London and San Francisco, ScanSafe is a market leader in software-as-a-service (SaaS) Web security, serving customers that span small- and mid-size organizations as well as large enterprises. Among ScanSafe’s customers are Google, AT&T, and Sprint.

ScanSafe’s competitors include Blue Coat, Websense, Symantec, McAfee, Kaspersky, Purewire (now part of Barracuda), and Zscaler. According to market research from IDC, ScanSafe held more than 30 percent of the worldwide SaaS web security market, on a revenue basis, in 2008.

In a press release announcing the acquisition, Cisco said web security will be a $2.3 billon market by 2012. Presuming Cisco can expand upon and extend ScanSafe’s market presence, the networking giant looks well placed to see a return on its investment before long.

Cisco foresees ScanSafe meshing well with its IronPort on-premise content-security appliances. With the IronPort web-security appliances and ScanSafe’s web-based security services, Cisco’s security portfolio encompasses either premise or hosted security as well as a hybrid approach combining both.

When the acquisition closes, Scan Safe will be subsumed within Cisco’s Security Technology Business Unit (STBU).

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