Cisco pays $2.3 billion for Duo Security and multi-factor authentification

Cisco agreed to acquire Duo Security, a start-up based in Ann Arbor, Michigan, for $2.3 billion in cash and assumed equity awards.

Duo Security specializes in unified access security and multi-factor authentication delivered through the cloud. Duo Security's solution verifies the identity of users and the health of their devices before granting them access to applications.

Cisco said the acquisition enables it to extend intent-based networking into multicloud environments. Cisco currently provides on-premises network access control via its Identity Services Engine (ISE) product. Duo's software as a service-based (SaaS) model will be integrated with Cisco ISE to extend ISE to provide cloud-delivered application access control. Duo's technology will also add trusted identity awareness into Cisco's Secure Internet Gateway, Cloud Access Security Broker, Enterprise Mobility Management, and several other cloud-delivered products.

"In today's multicloud world, the modern workforce is connecting to critical business applications both on- and off-premise," said David Goeckeler, executive vice president and general manager of Cisco's networking and security business. "IT teams are responsible for protecting hundreds of different perimeters that span anywhere a user makes an access decision. Duo's zero-trust authentication and access products integrated with our network, device and cloud security platforms will enable our customers to address the complexity and challenges that stem from multi-and hybrid-cloud environments."

Duo was founded by Dug Song, Jon Oberheide.

Duo has raised $119 million in venture capital. Investors in Duo included Benchmark, Index Ventures, Geodesic Capital, Meritech Capital Partners, Google Ventures, Redpoint, Lead Edge Capital, true ventures, and workday.