The deal is expected to close in the third quarter of 2024, subject to regulatory approval.
Cisco has agreed to acquire cybersecurity company Splunk for $28bn according to an announcement made today (21 September).
The multinational tech company, which was recently included in the latest cohort of the Best Workplaces in Tech in Ireland, will acquire Splunk for $157 per share in cash, which represents roughly $28bn in equity value. According to the joint statement, the transaction is expected to be cash flow positive and gross margin accretive in the first fiscal year following the deal’s close.
The deal has been approved by the boards of directors of both companies and is expected to close by the end of Q3 2024, subject to regulatory approval and the approval of Splunk’s shareholders.
Once the deal is closed, Splunk’s president and CEO Gary Steele will join Cisco’s executive leadership team and report to Chuck Robbins, chair and CEO of Cisco.
Robbins said that the company is “excited” about the deal.
“Our combined capabilities will drive the next generation of AI-enabled security and observability. From threat detection and response to threat prediction and prevention, we will help make organisations of all sizes more secure and resilient.”
Steele added that the deal represents “the next phase of Splunk’s growth journey, accelerating [the company’s] mission to help organisations worldwide become more resilient, while delivering immediate and compelling value to shareholders”.
“Together, 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,” he said.
“We’re thrilled to join forces with a long-time 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 organisations.”
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