Acquisitions continue to remain in fashion as corporations plug the gaps in their technology or develop it further by acquiring cutting edge companies. CloudLock Inc., a privately held cloud security company based in Waltham, Massachusett is the latest startup to be acquired by a mammoth corporation, namely 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.
In case you are unaware of it, CloudLock is a Waltham-based cloud securitycompany that focuses on providing enterprise class security solutions for companies that keep either part or all of their data in the clouds. The company has raised over 35 in series A, B and C rounds from various companies like Ascent Venture Partners, Cedar Fund and Bessemer Venture Partners.
The company is notable for providing security solutions for various public cloud platforms such as Google Apps and Salesforce. It also offers a specialized encryption solution services that works on a platform API level to protect sensitive data. It counts over 700 corporations as its customers.
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 deal is expected to cost Cisco somewhere around $293 million in cash and assumed equity awards. The company will also be providing additional retention-based incentives for those CloudLock employees who join Cisco as its employees. The acquisition is expected to conclude near the wan of the year.
Meanwhile, Cisco’s security portfolio is expected to receive a significant boost from the acquisition help the company in its goal of providing all around protection that ranges from the cloud to the network to the endpoint.
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.