Cisco's $830 million purchase of IronPort has prompted the
Internet Research Group to update its Anti-Spam Hall of Fame and warn independent anti-spam startups.
Comparing the 8X sales multiple paid by Cisco to other recent anti-spam acquisition multiples suggests Cisco overpaid. IRG concludes it ultimately will depend on how quickly the anti-spam market continues to grow. Either way, it appears Secure Computing got a very good deal for Ciphertrust last year.
Writing in their newsletter, the IRG principals also weighed in on the future facing anti-spam startups that remain independent:
Right now there's plenty of champagne to go around -- investors in all of these anti-spam companies have made money -- some far more than others. But investors in the 25+ other companies anti-spam companies may start worrying since they are now competing in a market where both Cisco and Microsoft each want to grow share.
Unless the startups possess technology coveted by Microsoft and Cisco, the prospect of competing against both giants doesn't sound too appealing.
Tags: cisco, microsoft, anti-spam, vc, venture capital
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