Company Update (NASDAQ:CSCO): Cisco Systems, Inc. Completes Acquisition of OpenDNS

Cisco Systems, Inc. (NASDAQ:CSCO) announced it has completed the acquisition of OpenDNS, a privately held company that provides advanced threat protection for any device, anywhere, anytime. The acquisition will advance Cisco’s Security Everywhere approach by adding broad visibility, enforcement, and threat intelligence from the OpenDNS cloud-delivered platform. In addition to the close of the acquisition, Cisco is announcing the first technology integration of Cisco AMP Threat Grid with OpenDNS services.

Cisco is demonstrating how the OpenDNS acquisition is already accelerating its cloud-delivered security portfolio by unveiling today integration between the technology platforms, which allows joint customers of the OpenDNS Umbrella service and AMP Threat Grid intelligence to benefit. An API connects OpenDNS’ global capability with AMP Threat Grid’s dynamic malware analytics and threat intelligence. This new integration enables AMP Threat Grid customers to automatically transform threat intelligence into threat enforcement by blocking malware and quickly identifying critical security threats discovered by the AMP Thread Grid service.

“Delivering pervasive security capabilities from the cloud is a core part of our mission to provide Security Everywhere across the extended network from data center to the cloud to mobile devices,” said David Goeckeler , senior vice president and general manager, Cisco Security Business Group . “By integrating the OpenDNS platform with Cisco’ssecurity solutions, customers will receive greater network visibility and threat intelligence for cloud delivered protection against malicious websites and threats. Together, we will deliver protection that is unmatched in the industry.”

OpenDNS employees join the Cisco Security Business Group led by Goeckeler. Additionally, David Ulevitch , founder and chief executive officer of OpenDNS, becomes vice president, reporting directly to Goeckeler.

Under the terms of the agreement Cisco paid $635M in cash and assumed equity awards, plus retention based incentives for OpenDNS. (Original Source)

Shares of Cisco opened today at $26 and are currently trading down at $25.83. CSCO has a 1-year high of $30.31 and a 1-year low of $22.49. The stock’s 50-day moving average is $27.78 and its 200-day moving average is $28.18.

On the ratings front, Cisco has been the subject of a number of recent research reports. In a report issued on August 17, Morgan Stanley analyst James Faucette downgraded CSCO to Hold, with a price target of $30, which implies an upside of 15.4% from current levels. Separately, on August 13, BMO’s Tim Long maintained a Buy rating on the stock and has a price target of $34.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, James Faucette and Tim Long have a total average return of 11.0% and 6.1% respectively. Faucette has a success rate of 76.9% and is ranked #390 out of 3734 analysts, while Long has a success rate of 44.2% and is ranked #1011.

The street is mostly Bullish on CSCO stock. Out of 13 analysts who cover the stock, 9 suggest a Buy rating and 4 recommend to Hold the stock. The 12-month average price target assigned to the stock is $32.65, which implies an upside of 25.6% from current levels.


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