Cisco Systems Inc. on Tuesday said it was adding to its cloud-security portfolio by agreeing to buy privately held CloudLock Inc. for $293 million in cash and equity.

The deal's terms also included retention incentives for CloudLock employees who join Cisco, the biggest maker of networking gear.

CloudLock, based in Waltham, Mass., specializes in cloud-security technology for businesses. The company will join Cisco's networking and security business group under Senior Vice President David Goeckeler.

The companies expect the deal to close by November.

According to data from researcher Gartner Inc., global corporate spending on public cloud services is expected to grow 16% to $204.2 billion this year, compared with 13.8% growth in 2015.

The increase reflects a new willingness among big companies, even those in particularly security-minded industries such as finance, to move beyond the corporate data center and run their software applications, data storage and processing over the internet on shared resources, in a model known as the public cloud.

Cisco Systems shares rose 1.5% to $27.71 in morning trading in New York amid a broader market rally.

Write to Brittney Laryea at Brittney.Laryea@wsj.com

(END) Dow Jones Newswires

June 28, 2016 10:55 ET (14:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Cisco Systems Charts.
Cisco Systems (NASDAQ:CSCO)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Cisco Systems Charts.