Aug 2 (Reuters) - Cisco Systems Inc is in advanced talks to acquire Duo Security, a venture capital-backed cyber security company, as it seeks to expand its offerings in cloud computing, according to people familiar with the matter.
The deal, which the sources said could reach $2 billion, would be the biggest acquisition for Cisco since its $3.7-billion purchase of business performance monitoring software company AppDynamics last year, and its largest in the cyber security sector since its $2.7-billion takeover of Sourcefire in 2013.
If negotiations are completed successfully, a deal between Cisco and Duo could be announced in the coming days, the sources said, asking not to be identified because the matter is confidential.
Cisco declined to comment while Duo did not respond to a request for comment.
Duo’s platform allows users to verify their identity with a two-step authentication, Its investors include Index Ventures, Workday, Redpoint Ventures and True Ventures.
Cisco, the world’s largest networking gear maker, has been making efforts to transform itself into a software-focused company.
With its traditional business of making switches and routers struggling, Cisco has been focusing on high-growth areas such as security, the Internet of Things and cloud computing.
Reporting by Liana B. Baker in New York Editing by Nick Zieminski