Cisco acquires cybersecurity firm Splunk for $28 billion in cash

In a strategic move aimed at bolstering its software division and tapping into the growing demand for artificial intelligence, Cisco Systems announced Thursday it has agreed to buy cybersecurity firm Splunk in an all-cash deal valued at $28 billion, Reuters reported. The deal is the biggest acquisition in the history of a four-decade-old network giant.

“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,” the companies said in a joint statement.

The acquisition agreement has received unanimous approval from the boards of both Cisco and Splunk and is slated to conclude by the close of the third quarter in 2024, pending regulatory clearance.

Cisco has expressed optimism regarding the financial implications of the transaction. It anticipates a positive impact on cash flow and an enhancement to gross margin within the first fiscal year following the deal’s closure. Furthermore, this acquisition is expected to expedite Cisco’s revenue growth and contribute to the expansion of its gross margin.

The deal is set at $157 per share in a substantial all-cash transaction valued at approximately $28 billion. Following this significant announcement, trading for Splunk shares, which had previously settled at $119.59 per share, was temporarily halted, according to a report from CNBC. Meanwhile, Cisco’s premarket trading showed a 4% decrease in stock value.

Splunk is a machine learning analytics company that produces software for searching, monitoring, and analyzing machine-generated big data. Funded in 2004 by Erik Swan, Michael Baum, and Rob Das, the San Francisco, California-based Splunk is the market leader in analyzing machine data to deliver Operational Intelligence for security, IT, and business.

Splunk software provides the enterprise machine data fabric that drives digital transformation. More than 12,000 customers in over 110 countries use Splunk solutions in the cloud and on-premises.

Share with your friends!

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest technology news and updates


Thank you for subscribing.

Something went wrong.

x  Powerful Protection for WordPress, from Shield Security
This Site Is Protected By
Shield Security