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 Cisco Completes Acquisition of Splunk In a $28 Billion Deal


Cisco Completes Acquisition of Splunk In a $28 Billion Deal

In a major tech acquisitions of this year, Cisco, world leader in networking, on Monday said that it has completed the acquisition of the US-based software firm Splunk for $28 billion, setting the foundation for delivering unparalleled visibility and insights across an organisation’s entire digital footprint.

To thrive in the new digital era, organisations must connect and protect all that they do. They need to connect the people, places, applications, data, and devices that power their business while protecting their entire digital footprint from cybersecurity threats, downtime, and other critical business risks.

Cisco will bring the full power of the network, together with market-leading security and observability solutions, to deliver a real-time unified view of the entire digital landscape, helping teams proactively defend critical infrastructure, prevent outages, and refine the network experience.

Cisco CEO Chuck Robbins said that as one of the largest software companies in the world, Cisco will be powering the AI revolution and revolutionise the way its customers leverage data to connect and protect every aspect of their organisation as they help power and protect the AI revolution.

“Starting now, our customers will begin to see the benefits of the power of our technologies coming together to not only solve many of their most complex challenges, but also enable tremendous opportunities,” he said.

The deal, which recently passed both shareholder and regulatory hurdles, looks to shake up various IT markets including networking, security, software and artificial intelligence.

“Our combined solutions will help deliver better economics with exceptional value. We believe the market trend towards tool consolidation –– and the convergence of networking, security, and observability –– creates a significant opportunity for Cisco and our customers,” Robbins said.

Image courtesy: Cisco

In today’s rapidly evolving digital landscape, it’s imperative for organisations to both connect and safeguard every facet of their operations. This encompasses linking their people, places, applications, data, and devices, all the while shielding their digital footprint against cybersecurity threats, downtime, and other pivotal business risks.

By integrating the full potential of the network with leading security and observability solutions, Cisco aims to provide a comprehensive, real-time overview of the digital landscape. This initiative is geared towards enabling teams to proactively secure critical infrastructure, avert outages, and enhance network experiences.

Gary Steele, Executive Vice President, General Manager, Splunk, said that the merger will bring tremendous value to the customers of both companies worldwide.

“The combination of Cisco and Splunk will provide truly comprehensive visibility and insights across an organisation’s entire digital footprint, delivering an unprecedented level of resilience through the most extensive and powerful security and observability product portfolio on the market,” he added.

Transaction Overview

Under the agreement terms, Cisco acquired Splunk at $157 per share in cash, totalling an equity value of approximately $28 billion. The acquisition is expected to positively impact Cisco’s cash flow (excluding certain acquisition-related items) and contribute to non-GAAP gross margin in fiscal year 2025 and non-GAAP EPS in fiscal year 2026, propelling Cisco towards accelerated revenue growth and non-GAAP gross margin expansion.

Global Business Magazine

Global Business Magazine

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