Cisco announced on Thursday that it will pay $2.35 billion in cash to acquire cloud-based identity and access management solutions provider Duo Security.
Ann Arbor, Michigan-based Duo raised $70 million in Series D funding in October 2017, which valued the company at $1.17 billion at the time.
Through its flagship two-factor authentication (2FA) app, Duo's "Trusted Access" product suite helps verify the identity of users, and the health of their devices, before granting them access to applications. The platform supports Macs, PCs and mobile devices, and gives administrators visibility into end user devices accessing the corporate network.
“Integration of Cisco's network, device and cloud security platforms with Duo Security's zero-trust authentication and access products will enable Cisco customers to easily and securely connect users to any application on any networked device,” Cisco said.
Overall, Cisco says that by getting its hands on Duo’s technology, it will be able to extend intent-based networking into multi-cloud environments, simplify policy for cloud security, and expand endpoint visibility coverage.
The acquisition is expected to close during the first quarter of Cisco's fiscal year 2019, subject to customary closing conditions and required regulatory approvals.
Duo said previously that it has doubled its annual recurring revenue for the past four years, and currently has more than 500 employees globally, after doubling its headcount in 2016.
Duo serves more than 10,000 paying customers and said protects more than 300 million logins worldwide every month. Customers include Facebook, Etsy, Facebook, K-Swiss, Paramount Pictures, Toyota, Random House, Yelp, Zillow and more.
In addition to its Ann Arbor, Michigan headquarters, Duo currently maintains offices in Austin, Texas; San Mateo, California; and London, England.
Duo Security, which will continue to be led by Dug Song, Duo Security's co-founder and chief executive officer, will join Cisco's Networking and Security business led by EVP and GM David Goeckeler.
Cisco has acquired several emering security companies over the years. In June 2015, it announced its acquisition of OpenDNS for $635 Million. The move followed other acquisitions by Cisco in the security sector, including its acquisition of Porcullis, ThreatGRID, Neohapsis, Virtuata, and its $2.7 billion acquistionof Sourcefire in 2013. In June 2016, it agreed to pay $293 million to acquire cloud access security broker (CASB) CloudLock.
Related: Cisco's Acquisition of CloudLock Puts Spotlight on CASB Market