Cisco's $2.7B Sourcefire Deal Boosts Cyber Security

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July 23 (Bloomberg) -- Bloomberg Editor-at-Large Cory Johnson reports that Cisco Systems boosted its cybersecurity technology, agreeing to acquire Sourcefire for close $2.7 billion. He speaks on Bloomberg Television's "Market Makers."

What kind of competitive position does this but john chambers in?

Buying the company for pride of -- quite a premium.

One of the many acquisitions that has been a characteristic.

They buy companies of all stages in all places.

Not based in silicon valley, but in maryland.

A lot of computer networking and security.

They essentially make a lot of the hardware used to prevent very sophisticated attacks to monitor network equipment traffic from kids -- from a security perspective.

It is a company growing quite a bit.

It is up from 25% the year before.

A lot of growth in the company.

We are constantly covering the hacking stories.

When you see the revenue growth doing 223 million in revenues in 2012, expected to do 278 this year, we'll see a company really growing dramatically because of this persistent threat.

With the attacks ramping up, does that explain the 29% premium that they are offering to pay for this company?

Take of this is not a huge premium to a lot of people.

-- is is not a huge premium to a lot of people.

This is one of the hottest areas of computing.

You can take a server or equipment and compartmentalize pieces of it and have virtual networks on many networks.

That also means many levels of security.

They make some fertilization security products that are really hot right now.

-- virtualization security products.

Is there another source fire out there, looking at other acquisition targets?

They run a merger and acquisition practice within the company.

One thing interesting is their ability to incorporate the companies they acquire.

You rarely hear about a big kick up some problems, despite multiple acquisitions they do.

They have a machine down there in san jose that helps them acquired these companies.

When they think they cannot build it and partner with it, they're very happy to partner with it.

Gives them ammunition in the fight against competition.

The stock up more than 25%. corey johnson, editor at large.

This text has been automatically generated. It may not be 100% accurate.

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