Cisco inks deal to buy Sourcefire for $2.37B

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Associated Press

Posted on July 23, 2013 at 9:00 AM

Updated Tuesday, Jul 23 at 9:02 AM

SAN JOSE, Calif. (AP) — Cisco says it's reached a deal to buy computer network security company Sourcefire for about $2.37 billion in cash.

Cisco will pay $76 cash for each of the Columbia, Md.-based company's shares. The price represents a 29 percent premium over Sourcefire's Monday closing stock price. Sourcefire shares jumped 29 percent in premarket trading.

Cisco says the addition of Sourcefire will boost its own cybersecurity offerings.

The deal also includes the assumption of outstanding stock awards and retention-based incentives. The companies valued it at about $2.7 billion.

Cisco expects the deal, scheduled to close in the second half of 2013, to slightly reduce its adjusted profit for fiscal year 2014.

Sourcefire was founded in 2001 and went public in 2007. In 2012, its revenue jumped 35 percent to $223.1 million.

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