Cisco is buying a privately-held networking and security company

Cisco Systems Inc (NASDAQ: CSCO) has decided in favour of buying Isovalent – a networking and security company based out of Cupertino, California. Its shares are slightly in the red at writing.

What’s in it for Cisco Systems?

The tech behemoth expects this acquisition to help improve its capabilities in secure networking.

Financial details of the agreement that it’s convinced will close in the third quarter of 2024 remain unknown. Jeetu Patel – the executive vice president of Cisco Systems said in a press release today:

In November, the Nasdaq-listed firm issued downbeat guidance for its full financial year. Cisco did, however, topped Street estimates in its fiscal Q1.

Cisco recently bought Splunk as well

The Isovalent acquisition will “build on the Cisco Security Cloud vision”. The networking and securities firm will continue to offer its products under the new owner, as per the press release on Thursday.

Cisco Systems Inc also confirmed today that it will add employees of the privately held company to its Security Business Group once the said transaction is complete.

The news arrives months after the tech titan said it will acquire Splunk Inc for about $28 billion to expand its footprint in cybersecurity as Invezz reported here.

Wall Street currently has a consensus “hold” rating on shares of Cisco Systems that are currently down more than 15% versus their year-to-date high in early September.