Cisco announced a definitive agreement to acquire California based privately held IronPort Systems, a provider of messaging security appliances, focusing on enterprise spam and spyware protection.

This acquisition extends Cisco’s security portfolio to messaging and Web security solutions. The security products and technology from IronPort add a suite of messaging solutions to Cisco's threat mitigation, confidential communications, policy control, and management solutions.

"We feel there is enormous potential for enhanced e-mail and message protection solutions to be integrated into the existing Cisco Self-Defending Network framework," said Richard Palmer, senior vice president, Cisco's Security Technology Group.

"Integrating IronPort's messaging security technology with Cisco's Self-Defending Network will enable a new level of defence for our customers," said Scott Weiss, CEO, IronPort Systems.

Under the terms of the agreement, Cisco will pay approximately $830 million in cash and stock. The acquisition is subject to various standard closing conditions and is expected to close in the third quarter of Cisco's fiscal year 2007 pushing Cisco into the anti-spam market for the first time. The acquisition is Cisco's fifth largest to date. Cisco anticipates this transaction will be neutral to its fiscal year 2007 non-GAAP earnings.

Although well-known for its PIX firewall, VPN, network access control, policy management and intrusion prevention products, Cisco has previously held back from entering the market for technologies that filter out junk mail.

Cisco believes in retaining the relationships and go-to-market strategies that both companies have developed. Upon close of the transaction, the IronPort team and product portfolio will operate as a business unit in Cisco's Security Technology Group, reporting into Richard Palmer.