Cisco has completed its acquisition of Splunk, a key player in data analysis, security and observability tools.
According to Security Week, the acquisition, valued at $28bn, was finalized on Monday, with Cisco paying $157 per share in cash for Splunk. This strategic move is aimed at leveraging Splunk’s advanced AI, security, and observability capabilities to complement Cisco’s vast solution portfolio.
Cisco, headquartered in San Jose, California, stands at the forefront of networking and cybersecurity solutions, offering a wide range of products and services designed to ensure secure and efficient data communication across various sectors. On the other hand, Splunk, based in San Francisco, specializes in the analysis of big data, providing insights that enable businesses to operate more securely and efficiently. Together, these companies aim to transform how data is utilized in the business world, emphasizing enhanced security and operational efficiency.
The reason behind this acquisition is clear: Cisco intends to integrate Splunk’s cutting-edge technology into its portfolio, thereby enhancing its capabilities in AI, security, and observability. This strategic move not only strengthens Cisco’s market position but also promises to deliver cash flow positive outcomes and non-GAAP gross margin accretive benefits in fiscal year 2025, with non-GAAP EPS accretion expected by fiscal year 2026.
This acquisition heralds a new era for both companies. Splunk’s expertise in data analysis and security is set to revolutionize Cisco’s offerings, enabling the networking giant to offer more comprehensive solutions to its customers. Chuck Robbins, Chair and CEO of Cisco, expressed his enthusiasm about the acquisition, stating that it positions Cisco as a revolutionary force in leveraging data to secure and connect every aspect of organizations globally.
Gary Steele, President and CEO of Splunk, will now serve as Executive Vice President and General Manager of Splunk, under Cisco, reporting directly to Robbins. This move signifies a significant integration of Splunk’s leadership into Cisco’s executive team, promising a seamless merger of the two companies’ visions and technologies.
The completion of this acquisition has led to Splunk’s common stock ceasing trading on NASDAQ, marking the end of its independent trading status and the beginning of a new chapter under Cisco’s umbrella.
“We are thrilled to officially welcome Splunk to Cisco. As one of the world’s largest software companies, we will revolutionize the way our customers leverage data to connect and protect every aspect of their organization as we help power and protect the AI revolution,” Cisco Chair and CEO Chuck Robbins said.
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