Cisco Inks $2.35 Billion Cash Deal To Acquire Duo Security

Cisco Systems has struck a deal to acquire Duo Security in a $2.35 billion cash deal that clears a new path for the networking behemoth into the market for unified access security and multifactor authentication.

Privately held Duo Security is based in Ann Arbor, Mich. Its cloud-based solution verifies the identity of users and the health of their devices before granting them access to applications.

Cisco intends to integrate Duo's solution with its cloud security platforms with an eye toward helping customers connect securely to any application over any networked device, a Cisco spokesman said in a statement.

[Related: Cisco Patches 4 'Critical' Mobile Security Flaws]

Cisco intends to pay $2.35 billion in cash and assumed equity awards for Duo's outstanding shares, warrants and equity incentives. Duo's employees will become part of Cisco's Security Business Group, which is led by Gee Rittenhouse. The Security Business Group sits within Cisco's Networking and Security business, which is led by Executive Vice President, Networking and Security David Goeckeler.

Goeckeler said in a blog Thursday that Duo would play a major role in Cisco's intent-based networking strategy.

"The Duo acquisition is another major step forward," Goeckeler wrote. "It moves Cisco in a new direction – identity and access. It's a seminal development for IT teams deploying multi-cloud models – the integration of networking, security and identity all delivered from a cloud-based, frictionless platform."