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Cisco to Boost Security Consulting with Portcullis Buyout

Networking equipment maker Cisco SystemsCSCO recently announced plans to acquire consultancy firm Portcullis in a bid to expand its security consulting services.

Cisco expects the acquisition, financial terms of which were not disclosed, to close in the second quarter of fiscal 2016. Portcullis will be incorporated into Cisco's Security Solutions group under the leadership of James Mobley, the vice president of the latter.

Portcullis is a privately held U.K.-based firm which offers security advisory services to enterprise clients and the government sector. Its consulting services include assessments to identify vulnerabilities, forensic testing, first responder training to prepare for attacks, policy review and creation, security awareness training, and overall security posture audits.

The acquisition comes at a time when the Internet security market is evolving rapidly. As cloud computing and mobile devices of various kinds flood the market, the need for secure networks to transfer data and related services with also see huge growth. Moreover, enterprises are looking for integrated hardware/software/services solutions to deal with security threats. This is the area that Cisco aims to target with this endeavor.

For several years, Cisco has been trying to expand its security portfolio through in-house development. It has also made several acquisitions such as Neohapsis, Sourcefire, Cognitive Security and ThreatGrid to bolster its security services.

Upon the completion of the deal, Cisco will strengthen its position in the network security market outside the United States and gain increased exposure to government and corporate customers. The purchase will help Cisco to broaden its efforts and meet changing compliance and security needs.

We believe that this acquisition will broaden Cisco's customer base and network offerings, providing it with a significant competitive edge.

Cisco currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Extreme Networks Inc. EXTR , Inphi Corporation IPHI and Ixia XXIA , sporting a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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