Cisco To Acquire Splunk For $28B To Drive ‘AI-Enabled Security And Observability’
‘From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient,’ Cisco CEO Chuck Robbins says of the blockbuster software deal.
Networking giant Cisco said it has reached an agreement to acquire unified security and observability platform developer Splunk for roughly $28 billion to “drive the next generation of AI-enabled security and observability.”
The two companies announced the blockbuster acquisition agreement Thursday, with San Jose, Calif.-based Cisco planning to pay $157 per share in cash to buy San Francisco-based Splunk. This represents a nearly 31.3 percent premium over Splunk’s closing stock price on Wednesday.
The deal is expected to close in the third quarter of 2024, pending regulatory approval and other customary closing conditions including acceptance by Splunk’s shareholders.
Cisco’s stock price was down more than 3.5 percent before trading opened Thursday. Splunk’s shares grew more than 23 percent in pre-market trading.
The deal’s announcement comes roughly a year and a half after Cisco reportedly put down a takeover offer for Splunk worth more than $20 billion.
“From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient,” said Cisco CEO Chuck Robbins in a statement.
“Bringing our two companies together will enable us to accelerate innovation in security and observability, and bring to market best-in-class technologies that keep digital systems secure and reliable across the hybrid, multi-cloud world,” said Tom Casey, Splunk senior vice president of Products & Technology, in a statement. “Together, we will integrate and build on Splunk and Cisco’s industry-leading solutions to deliver the most comprehensive visibility and insight in the market for AI-powered security, observability and network operations. Cisco and Splunk bring decades of trusted technology leadership to help our customers navigate digital transformation with greater speed, drive digital resilience and rapidly unlock new opportunities in a world fueled by AI.”
Splunk CEO To Stay With Cisco
Gary Steele, president and CEO of Splunk, said in his own statement that the combined companies 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.”
“We’re thrilled to join forces with a longtime and trusted partner that shares our passion for innovation and world-class customer experience, and we expect our community of Splunk employees will benefit from even greater opportunities as we bring together two respected and purpose-driven organizations,” he added.
Steele will stay on board as part of Cisco’s executive leadership team and will report to Robbins, according to the statement.