Cisco buys Ironport for $830 million

Cisco has started off 2007 with a bang: buying Ironport Systems for a whopping $830 million in stock and cash. Ironport makes appliances for enterprises and helps them tackle the spyware problems and email spam amongst other things. The deal is an effort by Cisco to beef up Cisco Security Technology Group. Is this deal a sign that Cisco has its big “check book” out again?

As a backstory, the company raised over $100 million in venture funding. The buyout today is still more cash in the pockets of Peter Thiel and Max Levchin and ex Hotmail-ers Sabeer Bhatia and Jack Smith who were amongst the individual investors who participated in the initial round of funding.