Cisco to Acquire Splunk: Enhancing Security, Observability, and Resilience
Cisco and Splunk have announced a definitive agreement in which Cisco intends to acquire Splunk for approximately $28 billion in equity value. This strategic move aims to bring together the capabilities of both companies to drive the next generation of AI-enabled security and observability.
The acquisition will accelerate Cisco’s business transformation to a more recurring revenue model and position the company as one of the world’s largest software companies. It is expected to be cash flow positive and gross margin accretive in the first fiscal year post-close, and non-GAAP EPS accretive in year two, fueling revenue growth and gross margin expansion.
The combination of Cisco and Splunk will form a global security and observability leader that harnesses the power of data and AI to deliver excellent customer outcomes. By uniting security analytics and coverage from devices to applications to clouds, the companies will provide organizations with comprehensive security solutions.
In today’s hyperconnected world, organizations face complex challenges in managing, protecting, and unlocking the true value of data. The union of Cisco and Splunk will address these challenges head-on, providing observability across hybrid and multi-cloud environments.
Both companies have reputations for being purpose-driven with similar values, strong cultures, and talented teams. The acquisition will bring together two “Great Places to Work” and create even greater opportunities for employees.
The transaction is subject to regulatory approval and other customary closing conditions and is expected to close by the end of the third quarter of calendar year 2024.
Sources:
– PR Newswire: Cisco and Splunk Announce Agreement for Cisco to Acquire Splunk
– Cisco and Splunk Investor Conference Call Transcript
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