How Uncle Sam Is Helping U.S. Tech Companies Win Security Deals


by Jordan Robertson, courtesy Bloomberg —

Talk about home field advantage. As Cisco Systems’ $2.7 billion acquisition of Maryland-based Sourcefire shows, it pays to be located on American soil, especially when it comes to buying a U.S. security company.

The deal with Sourcefire, which got 19 percent of its $223 million in revenue last year from sales to the U.S. government, is emblematic of the tight control the feds exert over their closest suppliers of anti-hacking technologies.

See also: Cisco to Buy Sourcefire, a Cybersecurity Company, for $2.7 Billion

With the acquisition, Cisco will join companies including Hewlett-Packard that have directly benefited from the government’s tightfisted approach to deals involving foreign companies and U.S. network-security products.

In 2005, Sourcefire was going to be sold to Check Point Software, an Israeli maker of Internet firewalls, for $225 million. Then the Committee on Foreign Investment in the United States, or CFIUS, an arm of the Treasury…

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