Priya Patel
TLDR:
Key Points:
- Cisco completed a $28 billion acquisition of Splunk, paying $157 per share in cash.
- The deal was first announced in September 2023, and Cisco plans to leverage Splunk’s AI, security, and observability capabilities.
In a significant move, Cisco (NASDAQ: CSCO) finalized its acquisition of Splunk for $28 billion, paying $157 in cash per share. Splunk is known for its data analysis, security, and observability tools. Cisco intends to use Splunk’s capabilities to enhance its own solution portfolio. The deal was initially announced in September 2023. Splunk’s President and CEO, Gary Steele, has joined Cisco’s executive team as the Executive Vice President and General Manager of Splunk. Cisco expects the transaction to be cash flow positive and non-GAAP gross margin accretive in fiscal year 2025 and non-GAAP EPS accretive in fiscal year 2026.
Chuck Robbins, Chair and CEO of Cisco, expressed excitement about the acquisition, stating that it will revolutionize how customers utilize data to connect and protect their organizations in the AI era. The integration of Splunk’s technologies is expected to power and safeguard the AI revolution. Splunk’s common stock ceased trading on NASDAQ following the completion of the acquisition.
The completion of this acquisition marks a significant milestone for both Cisco and Splunk, aligning their strengths in data analysis, security, and observability to provide enhanced solutions for organizations across various industries.
