Cisco is acquiring privately-held Duo Security. Under the terms of the agreement, Cisco will pay $2.35 billion in cash and assumed equity for the company.

Duo Security, a company that provides cloud-based two-factor authentication, has raised $12 million in Series B funding. The investment was led by Benchmark Capital. Google Ventures, True Ventures and Radar Partners also participated in the round. Duo Security is primarily based in Ann Arbor, Michigan and has recently expanded operations on the East and West coasts.

Duo Security, an emerging authentication-as-a-service provider, has received a $5 million investment from Google Ventures, True Ventures, and Resonant Venture Partners. This investment follows...