Cisco Reportedly Mulls Buying Israeli Cybersecurity Startup For At Least $250M As Concern Over AI Agents Mount

• The deal is reportedly worth between $250 million and $350 million, according to people familiar with the matter. 
• This represents a premium of at least 25% compared to the startup’s last valuation of around $200 million.
• The reported deal announcement comes amid growing cybersecurity concerns in the market.

Cisco Systems Inc. (CSCO) is reportedly considering buying Israeli cybersecurity startup Astrix Security for at least $250 million.

According to a report from The Information, citing people familiar with the matter, Cisco is currently in talks to acquire the firm that primarily sells software geared toward monitoring and securing artificial intelligence agents.

The reported deal announcement comes amid growing cybersecurity concerns in the market. Cisco President Jeetu Patel reportedly flagged the risk of AI agents going rogue as a big problem to consider to The Information earlier.

Meanwhile, earlier this week, Anthropic announced its ‘Project Glasswing,’ a new cybersecurity initiative to improve software vulnerability detection, marking a watershed moment for AI security.

Deal Contours

Cisco’s potential acquisition deal is reportedly worth between $250 million and $350 million, according to people familiar with the matter. This represents a premium of at least 25% compared to Astrix Security’s last valuation of around $200 million, as per the report.

The deal discussions are currently underway, The Information reported, adding that the companies may not reach an agreement.

The report also confirmed that spokespeople for Cisco and Astrix did not respond to requests for comments on the deal.

Patel had previously told The Information that AI agents would pose a significant threat. “You have to delegate work to these agents and the difference between delegation and trusted delegation is the difference … between bankruptcy and market leadership,” he had reportedly said after Cisco had announced updates to its software to protect against risks from AI agents.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around CSCO shares was in the ‘bullish’ territory, amid ‘high’ message volumes.

CSCO shares have gained more than 45% in the past 12 months. Meanwhile, First Trust NASDAQ Cybersecurity ETF (CIBR), which tracks American cybersecurity companies, has declined 1.49% in the same time, while the Amplify Cybersecurity ETF (HACK) has gained 1.76%.

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