Cisco's Cybersecurity Coup: Plans To Buy Cloud-Native Networking And Security Startup Isovalent
Portfolio Pulse from Nabaparna Bhattacharya
Cisco Systems, Inc. (NASDAQ:CSCO) announced its intention to acquire Isovalent, Inc., a cloud-native networking and security company. This acquisition is aimed at enhancing Cisco's Security Cloud vision, which is an AI-driven, cloud-delivered, integrated security platform suitable for organizations of all sizes. Isovalent is a key contributor to eBPF and the development of Cilium, a leading solution for cloud-native networking and security. The Isovalent team will join Cisco's Security Business Group after the acquisition, expected to be completed in the third quarter of fiscal year 2024. Cisco's stock was trading down by 0.69% to $49.46 at the last check on Thursday.
December 21, 2023 | 7:20 pm
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Cisco's planned acquisition of Isovalent aims to enhance its Security Cloud platform, potentially strengthening its position in the cloud-native networking and security market.
The acquisition of Isovalent is likely to have a positive impact on Cisco's long-term growth in the cybersecurity space, which is a key area of expansion for the company. In the short term, the slight dip in stock price may be due to market digestion of the acquisition news. However, the strategic importance of the acquisition for Cisco's product offering and the potential for future growth could lead to a positive outlook for the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100