Cisco intends to buy Duo Security, cybersecurity startup based in Ann Arbor for $2.35 billion in a combination of cash and stock.
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.
Duo Security 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.
“This acquisition is going to enable us to allow customers to securely connect any user on any device to any application over any network,” said David Goeckeler, an executive vice president and general manager of security at Cisco, according to the sources.
“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 CEO.
“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,” he added.
Over the last few years, Cisco has made several key acquisitions such as OpenDNS, Sourcefire, Cloudlock, and now Duo. Cisco said the acquisition is expected to close, pending regulatory approval, in the next three months.