Cisco Buying OpenDNS For $635 million

Cisco Systems Inc has agreed to buy network security company OpenDNS for $635 million. The deal will be closing in the first quarter of 2016.

The deal comprises cash and assumed equity awards, plus retention-based incentives for OpenDNS, WSJ reported.

OpenDNS is a San Fransisco based company that protects corporations, schools and households from attacks and malware through cloud-delivered security services.

Combining OpenDNS's visibility, predictive threat intelligence and cloud platform with enhance Cisco's security capabilities, the company noted.

Last year, Cisco had acquired cybersecurity firm Sourcefire for $2.7 billion along with malware technology company ThreatGrid Inc.

Reportedly, the security business represented about 4.3 percent of Cisco's overall revenue in 2014.