Cisco has signed a definitive agreement to acquire cybersecurity solutions company Sourcefire. Under the terms of the agreement, Cisco will pay approximately $2.7 billion, including retention-based incentives, for the company.

Hilton Romanski (Vice president, Corporate Development, Cisco): ‘Buy’ has always been a key part of our build-buy-partner innovation strategy. 

The acquisition has been approved by the board of directors of each company, and is expected to close during the second half of calendar year 2013, subject to customary closing conditions and regulatory reviews.

Upon completion of the transaction Sourcefire employees will join the Cisco Security Group led by Christopher Young, senior vice president, Cisco Security Group.

Sourcefire was founded in 2001 and completed its initial public offering in 2007. The company is based in Columbia, MD, and has more than 650 employees worldwide. For the full year ended December 31, 2012, Sourcefire reported revenue of $223.1 million, an increase of 35 percent year-over-year.

[Image courtesy: Sourcefire]