Cisco Announces $28 bn Acquisition of Splunk, Strengthening Cybersecurity and Observability Portfolio

In a significant move to bolster its cybersecurity and observability offerings, global technology giant Cisco has announced its intent to acquire Splunk, a leading player in the cybersecurity and observability domain. The acquisition is valued at $157 per share in cash, translating to an approximate equity value of $28 billion.Cisco, the leading enterprise networking supplier, has generated revenue of $3.9 billion from its security business during the fiscal year results for the period ended July 29, 2023. Cisco’s total revenue was $57 billion, an increase of 11 percent, during the fiscal.

The integration of Splunk’s robust security capabilities into Cisco’s existing portfolio is expected to create a powerful synergy, delivering unparalleled security analytics and coverage across a spectrum ranging from devices to applications to cloud environments.

Cisco and Splunk’s collaborative strengths promise enhanced observability solutions for hybrid and multi-cloud setups, empowering customers to optimize application performance and elevate digital business experiences. Notably, the acquisition positions the companies to responsibly harness the potential of artificial intelligence, leveraging their extensive scale, data visibility, and established trust framework.

Gary Steele, President and CEO of Splunk, is set to assume a vital role within Cisco’s Executive Leadership Team, reporting directly to Chair and CEO Chuck Robbins.

In the fourth quarter of fiscal 2023, Cisco closed the following acquisitions: Lightspin Technologies., a cloud security software company; Smartlook, a company that provides a digital experience and product analytics solution that monitors user engagement on websites and mobile applications in real time; and Armorblox, a company focused on the use of Large Language Models and natural language understanding in cybersecurity.

The acquisition plan has garnered unanimous approval from the boards of directors at both Cisco and Splunk. Pending regulatory approval and customary closing conditions, including the consent of Splunk shareholders, the acquisition is anticipated to conclude by the end of the third quarter of calendar year 2024.