- Cisco Systems (NASDAQ:CSCO) is gearing up to acquire Splunk (NASDAQ:SPLK) for US$28 billion in what will become one of the world’s largest software companies
- The two companies will help organizations in moving from threat detection and response to threat prediction and prevention instead
- Cisco Systems and Splunk will also be well-positioned to become leaders in security and observability
- Shares of Cisco Systems are down 4.02 per cent to US$53.27 as of 10:37 am ET, while shares of Splunk are up 21.07 per cent to $144.79 as of 10:38 am ET
Cisco Systems (NASDAQ:CSCO) is gearing up to acquire Splunk (NASDAQ:SPLK) for a whopping US$28 billion in what will become one of the world’s largest software companies.
In a news release, the. San Jose, California-based company stated the acquisition will help the companies in moving organizations from threat detection and response to threat prediction and prevention instead.
“We’re excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability,” Chuck Robbins, chairman and CEO of Cisco, 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.”
Cisco Systems also said the two companies will position them as leaders in security and observability “in the age of AI.”
“Uniting with Cisco represents the next phase of Splunk’s growth journey, accelerating our mission to help organizations worldwide become more resilient, while delivering immediate and compelling value to our shareholders,” Gary Steele, president and CEO of Splunk, said in a statement.
Once the deal is closed, the companies expect to be cash flow positive and gross margin accretive in the first fiscal year, and non-GAAP EPS accretive in year two.
The deal has been unanimously approved by Cisco Systems’ and Splunk’s boards of directors and is expected to close by the end of Q3 2024.
Cisco Systems is a technology company focused on developing and selling networking equipment. It also provides software and related services.
With its headquarters out of San Fransisco, Splunk produces software for searching, monitoring and analyzing machine-generated data through a web-based interface.
Shares of Cisco Systems are down 4.02 per cent to US$53.27 as of 10:37 am ET, while shares of Splunk are up 21.07 per cent to $144.79 as of 10:38 a.m.
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