Cisco Systems, Inc. (NASDAQ:CSCO) announced its intent to acquire CloudLock Inc., a privately held cloud security company based in Waltham, Massachusetts. CloudLock specializes in cloud access security broker (CASB) technology that provides enterprises with visibility and analytics around user behavior and sensitive data in cloud services, including SaaS, IaaS and PaaS. The acquisition will further enhance Cisco’s security portfolio and build on Cisco’s Security Everywhere strategy, designed to provide protection from the cloud to the network to the endpoint.
More data, more devices, and the increasingly decentralized way companies do business means that security has to evolve beyond an on-premises approach. CloudLock helps customers accelerate their cloud adoption by delivering security built specifically to meet the realities of today’s cloud-first enterprise. CloudLock’s CASB technology helps customers understand and monitor user behavior and sensitive data in cloud applications, providing greater visibility, compliance and threat protection regardless of whether these applications are fully sanctioned by IT or not.
“As companies are migrating to the cloud, they need a technology partner that can accelerate that transition and deliver critical security capabilities for all their users, apps and data in a seamless way,” said Rob Salvagno, vice president of Cisco Corporate Development. “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.”
Today’s acquisition will help accelerate Cisco’s cloud security portfolio, and extend the cloud security offering throughout the enterprise. Together, we plan to offer the industry’s broadest cloud security protection and enable our customers to realize the benefits of the mobile-cloud era.
The CloudLock team will join Cisco’s Networking and Security Business Group under Senior Vice President and General Manager David Goeckeler. Under the terms of the agreement, Cisco will pay $293 million in cash and assumed equity awards, plus additional retention-based incentives for CloudLock employees who join Cisco. The acquisition is expected to close in the first quarter of fiscal year 2017, subject to customary closing conditions.(Original Source)
Shares of Cisco are up nearly one percent to $27.61 in pre-market trading. CSCO has a 1-year high of $29.49 and a 1-year low of $22.46. The stock’s 50-day moving average is $28.26 and its 200-day moving average is $26.75.
On the ratings front, Cisco has been the subject of a number of recent research reports. In a report issued on June 22, Wells Fargo analyst Jess Lubert reiterated a Buy rating on CSCO. Separately, on June 21, Barclays’ Mark Moskowitz reiterated a Buy rating on the stock and has a price target of $31.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jess Lubert and Mark Moskowitz have a total average return of 4.2% and 14.5% respectively. Lubert has a success rate of 59.5% and is ranked #877 out of 3967 analysts, while Moskowitz has a success rate of 58.5% and is ranked #103.
Overall, one research analyst has rated the stock with a Sell rating, 7 research analysts have assigned a Hold rating and 15 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $30.73 which is 12.5% above where the stock closed yesterday.