AFI BLOG: Media and Technology

The Wall Street Journal

When Scott Weiss heard that tech behemoth Cisco Systems Inc. wanted to acquire an email-security company like his startup, he emailed a vow to his staff: “Said acquiree will not be us.”

Cisco was famous for fueling its stellar growth by buying dozens of companies and digesting them completely, installing its own executives and leaving little trace of a target’s identity. The method made Cisco the envy of the technology world, where so many acquisitions go awry. Mr. Weiss feared losing control of the firm he co-founded, IronPort Systems Inc. When Cisco made an offer in early 2006, he declined.

Then last year, Mr. Weiss agreed to sell, for $830 million. His convictions hadn’t shifted. Cisco’s had.

The Silicon Valley icon has been remaking its acquisition strategy as it carefully tries to move into the 21st century’s hot tech markets. The company ultimately offered Mr. Weiss an un-Cisco-like proposition: Cisco would buy IronPort, but let it operate as a stand-alone unit, with its own managers, brand name, engineers and salespeople.

“They wanted to make sure they didn’t screw it up,” says Mr. Weiss. This month, Cisco promoted Mr. Weiss, 42 years old, to head all of its security-technology business.

More