HomeUSACisco is To Acquire Splunk, for $28 Billion

Cisco is To Acquire Splunk, for $28 Billion

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Cisco

Cisco (NASDAQ: CSCO) is to acquire Splunk (NASDAQ: SPLK), a cybersecurity and observability company, for $157 per share in cash, representing approximately $28 billion in equity value.

Upon close of the acquisition, Splunk President and CEO Gary Steele will join Cisco’s Executive Leadership Team reporting to Chair and CEO Chuck Robbins.

The acquisition will accelerate Cisco’s strategy to securely connect everything to make anything possible. Specifically, Splunk’s security capabilities complement Cisco’s existing portfolio, and together, will provide security analytics and coverage from devices to applications to clouds. Cisco and Splunk’s complementary capabilities will provide observability across hybrid and multi-cloud environments enabling customers to deliver application experiences that power their digital businesses.

The transaction 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. Additionally, it will accelerate Cisco’s revenue growth and gross margin expansion.

FinSMEs

22/08/2023

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