Cisco to acquire cybersecurity company Splunk in $28B deal
Cisco's acquisition of Splunk expected to close in third quarter of 2024
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Cisco announced Thursday it will purchase Splunk, a cybersecurity and analytics firm, for $157 per share in cash or roughly $28 billion in equity value.
"Our combined capabilities will drive the next generation of AI-enabled security and observability," Cisco CEO Chuck Robbins said in a statement. "From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient."
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The deal, which was approved by the boards of directors of both companies, comes as the industry faces a new wave of artificial intelligence technologies and increasing cybersecurity pitfalls.
"We will form a global security and observability leader that harnesses the power of data and AI to deliver excellent customer outcomes and transform the industry," Splunk CEO Gary Steele said.
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Cisco's purchase will also factor in "the acceleration and adoption of generative AI, expanding threat surfaces, and multiple cloud environments."
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The acquisition is expected to close by the end of the third quarter of 2024.
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The deal is also expected to be cash flow positive, gross margin accretive in the first year after the acquisition's close and non-GAAP EPS accretive in the second year.
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The transaction will not impact Cisco’s previously announced share buyback program or dividend program. Qatalyst Partners and Morgan Stanley are acting as financial advisers to Splunk.