Cisco To Buy Security Software Company

Based in Austin, Texas, Psionic develops software for intrusion-detection systems (IDSes) that reduces false alarms by up to 95 percent, Cisco said.

Under the agreement, Cisco common stock worth up to $12 million will be exchanged for all outstanding shares and options of Psionic.

Subject to approvals, the deal is expected to close by the end of January.

Cisco plans to integrate Psionic's software into its IDS solutions, the company said. False alarms are a common problem with current IDS products, according to Cisco. And misidentified attacks often lead to the termination of legitimate network traffic, Cisco said.

Psionic's intrusion response technology uses adaptive scanning techniques to validate IDS events and escalate legitimate attacks, Cisco said.

Psionic's eight employees are slated to join the Cisco VPN and Security Services business unit.