Cisco to buy cyber security firm Duo

Cisco systems Inc. will buy Duo Security, a venture capital backed cyber security company for $2.5 Billion in cash, as it seeks to expand its offerings in cloud computing.

The deal is the biggest acquisition for Cisco since its $3.7 billion purchase of business performance monitoring software company AppDynamics last year, and it’s largest in the cyber security sector since its $2.7 billion takeover of Sourcefire in 2013.

Duo’s platform allows users to verify their identity with a two-step authentication and its investors include Index Ventures, Workday, Redpoint Ventures and True Ventures. Cisco, the world’s largest networking gear maker, has been making efforts to transform itself into a software-focused company.

With its traditional business of making switches and routers struggling, Cisco has been focusing on high-growth areas such as security, the Internet of Things and cloud computing.