Cisco has confirmed it will acquire California-based cybersecurity and software company Splunk.
The deal is expected to be worth around $28 billion, with Cisco confirming a valuation of $157 per share, which it will purchase in cash.
The hope is that in closing this deal, both comapnies will be able to piggy-back off one another’s success and build a better resilience moving forward, each with their own experience in AI, security, and observability.
Splunk sold to Cisco for $28 billion
Cisco Chair and CEO Chuck Robbins said: “We’re excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability.”
The companies also confirmed that Splunk’s president and CEO, Gary Steele, will join Cisco’s Executive Leadership Team in a new role that will see him report directly to Robbins.
For other employees, Cisco said: “The acquisition will unite two ‘Great Places to Work’ with a shared passion for innovation and inclusion and will remain a great place to work and the premier place for software talent.”
Together, both companies have outlined a clear goal to help organizations handle large amounts of data, in turn aiding mission-critical decisions. They will do this with the help of emerging generative AI technologies.
The new challenges that come with GenAI, along with multicloud adoption and an increased number of attack surfaces, are key to how the companies will deliver going forward.
Cisco hopes that the deal, which is now confirmed, will be complete by the end of the third quarter of 2024, subject to approval and closing conditions. Full details of the announcement can be found in the joint press release.
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