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M&A News: Cisco (CSCO) in Talks to Acquire Israeli Cybersecurity Startup Astrix for up to $350M

Tipranks - Tipranks - Tue Apr 14, 6:18AM CDT

Networking and cloud computing company Cisco (CSCO) is in talks to acquire Israel-based cybersecurity startup Astrix Security, The Information reported. The deal is reportedly valued in the range of $250 million to $350 million. Astrix offers software to monitor and secure AI agents. The news comes as security threats are increasing amid the rapid adoption of AI.

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More on Cisco’s Potential Acquisition of Astrix

The news about the potential acquisition of Astrix by Cisco comes as AI agents are seeing strong popularity. However, there is a risk that these AI agents could go rogue, given their access to sensitive information.

The acquisition price of $250 million to $350 million reflects at least a 25% premium to Astrix’s last valuation of nearly $200 million. While the discussions are ongoing, the two companies might not reach a deal.

The acquisition is in line with Cisco’s recent efforts to boost its subscription-based software business, including cybersecurity offerings. Last week, Cisco announced the acquisition of Galileo Technologies, an AI observability and trust platform. Cisco expects the Galileo deal to bolster its AI Agent monitoring capabilities in the Splunk Observability Cloud. The company expects to close the Galileo acquisition in Q4 FY26.

UBS Weighs in on the News of Potential Acquisition

Following the news of a potential acquisition of Astrix, UBS analyst David Vogt reiterated a Buy rating on Cisco stock with a price target of $95. Vogt contends that while the financial impact of this deal would be insignificant in the near term, getting a small start in a technology that can manage agentic AI early is an “interesting opportunity,” especially when combined with the rest of Cisco’s security portfolio.

Given Cisco’s plan to capitalize on Splunk to increase its share in AI systems markets across enterprise and sovereign customers, Vogt believes that adding tools to identify and fix risks from non-human identities should be a natural fit.

Is CSCO a Buy, Sell, or Hold?

Currently, Wall Street has a Moderate Buy consensus rating on Cisco stock based on 10 Buys and four Holds. The average CSCO stock price target of $92 indicates 12% upside potential.

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