Cisco, a global leader in networking technology, shakes up the tech industry with its record-breaking $28 billion acquisition of Splunk.
Splunk is a Developer Tools Index company specializing in observability and monitoring.
The deal is a strategic move for Cisco to strengthen its security business and dive deeper into AI-driven solutions.
What you need to know?
- The deal is priced at a premium of $157 per share.
- The acquisition will bolster Cisco's security division with Splunk's observability platform.
- Both companies aim to drive the next generation of AI-enabled security solutions.
- The acquisition surpasses Silver Lake's $12.5 billion Qualtrics deal, making it the largest enterprise software acquisition of 2022.
- The deal is set to close by the third quarter of next year, pending regulatory approval.
Analyst Ray Wang from Constellation Research endorsed the merger's potential for natural synergy in threat detection and AI-driven observability.
While the acquisition has already received approval from the boards of both companies, it will still need to pass regulatory scrutiny before becoming official.