If I remember correctly Cisco's IDS platform is based on SNORT and they need to buy licenses from SourceFire in order to be able to resell it as their own product.
They probably did a cost/benefit analysis and found out it was cheaper to buy the company than to keep paying the license fees.
They have done this before with WebEx. They were WebEx's biggest customer by a wide margin and they found out it would be cheaper to buy webEx than to continue to pay them.
Are you 100% sure about that because I REALLY have to disagree. I have dug under the covers on my Cisco IPS sensors (via the 'service' account which gives you full root privs) and there is nothing that looks even remotely snort-like. If there was I would have ported the Emerging Threats rules over ages ago.
I have had conversations with a lot of people on the Cisco IPS team over years, including Jerry Lathem who I think was one of their original developers. I was constantly harping on the fact that their sigs don't detect malware worth a damn, and showed them how I was using a snort-to-cisco rule conversion tool (s2c) with fairly good success.
I think the acquisition was just a realization by Cisco that their IPS sucks and, more importantly, their ASA-CX NextGen Firewall sucks also. Rebuilding was not an option given how long their development cycles take (i.e. forever)
My guess is that Cisco is going to get either Snort or the SourceFire-branded version to run as a software module inside of the ASA 5500-X series firewalls, which should be easy given how they are doing it with their own IPS now. Either way you'll have to pay for it (this is Cisco we're talking about). But I also assume they'll keep Snort open-source and won't do anything to severely piss off the community. Still - I think Suricata is a better long-term option but that's a topic for an entirely different thread.