Cisco Secures $28bn Deal to Acquire Cybersecurity Powerhouse Splunk

Cisco strengthens its position with a major cybersecurity acquisition

In a strategic move set to shake up the industry, global technology giant Cisco has revealed its plan to acquire leading cybersecurity company Splunk in a landmark deal worth £28 billion.

Driving innovation and security in the digital landscape

The acquisition, which is expected to be finalized in the third quarter of 2024, is subject to regulatory approval. Once completed, it will bring together the advanced capabilities of both companies to provide cutting-edge AI-enabled security and observability solutions.

Cisco's acquisition of Splunk showcases their commitment to creating a safer and more resilient digital environment for organizations of all sizes. This transformative partnership will empower businesses to detect, predict, and prevent security threats using the power of data and artificial intelligence.

Unveiling the financial details and future prospects

Cisco will acquire Splunk for £157 per share in cash, representing an equity value of approximately £28 billion. The agreement, which has received approval from both companies' boards of directors, is projected to be cash flow positive and gross margin accretive in its first fiscal year following completion.

Upon closing the deal, Gary Steele, President and CEO of Splunk, will join Cisco's executive leadership team. He will report directly to Chuck Robbins, the Chairman and CEO of Cisco.

Chuck Robbins expressed his excitement about the acquisition, emphasizing the potential to drive the next generation of AI-enabled security solutions. He believes that the partnership will enable organizations to become more secure and resilient in the face of evolving threats.

Gary Steele echoed Robbins' sentiments, highlighting the growth opportunities presented by the merger. By leveraging data and AI, the combined entity aims to become a global leader in security and observability, delivering exceptional customer outcomes and driving industry transformation.

The road ahead: A united vision for innovation

The collaboration between Cisco and Splunk marks the beginning of an exciting new phase for the cybersecurity landscape. As the companies come together, their shared passion for innovation and customer-centric approach will fuel further advancements in the field.

With the integration of their respective expertise and resources, Cisco and Splunk look forward to creating a stronger, more dynamic cybersecurity ecosystem that addresses the evolving needs of businesses worldwide.