Cisco buys OpenDNS

Merge-AheadUS spies’ favourite  target Cisco wants to buy the cloud security company OpenDNS for $635 million.

Cisco was one of the outfit’s investors in a $35 million round in May, 2014.

The $635 million will be paid in cash and assumed equity awards, plus retention based incentives for OpenDNS, according to information supplied by Cisco.

OpenDNS gives Cisco, a network vendor that offers more traditional network edge protection.

The purchase builds on Cisco’s strategy to add a cloud security layer, according to a blog post by Hilton Romanski, who leads business development at Cisco.

Romanski wrote in in his bog: “The acquisition will extend our ability to provide customers enhanced visibility and threat protection for unmonitored and potentially unsecure entry points into the network, and to quickly and efficiently deploy and integrate these capabilities as part of their defense architecture.”

The OpenDNS team will join the Cisco Security Business Group. The deal is expected to be finalized during the first quarter of fiscal 2016.

OpenDNS has over 10,000 paying customers, over 50 million users (through its free service). It runs 24 data centers, and claims more than 2 percent of the world’s DNS traffic with an astonishing 100 percent uptime, according to information supplied by the company last year.
Cisco has indicated it will continue to offer the free version of OpenDNS.

“The OpenDNS free DNS services will not be affected. Cisco is committed to OpenDNS’ consumer and enterprise DNS services. The OpenDNS products will transition into Cisco upon close of the acquisition.”