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Cisco Acquires Splunk ($SPLK) for $28 Billion, Marking the Year's Biggest Enterprise Software Deal
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.
investor.cisco.com
Cisco to Acquire Splunk, to Help Make Organizations More Secure and Resilient in an AI-Powered World
News Summary Together, Cisco and Splunk will help move organizations from threat detection and response to threat prediction and prevention Combined, Cisco and Splunk will become one of the world's largest software companies and will accelerate Cisco's business transformation to more recurring revenue Expected to be cash flow positive and gross margin accretive in first fiscal year post close, and non-GAAP EPS accretive in year 2. Will accelerate revenue growth and gross margin expansion Unites two "Great Places to Work" with similar values, strong cultures, and talented teams The combination of these two innovative leaders makes them well positioned to lead in security and observability in the age of AI Cisco (NASDAQ: CSCO) and Splunk (NASDAQ: SPLK), the cybersecurity and observability leader, today announced a definitive agreement under which Cisco intends to acquire Splunk for $157 per share in cash, representing approximately $28 billion in equity value. Upon close of the
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