Cisco has successfully concluded its acquisition of Splunk for a staggering $28 billion. This move, initially announced in September 2023, marks a significant step for the networking giant into the realm of data analysis, security, and observability tools. With a purchase price of $157 per share in cash, Cisco aims to capitalize on Splunk’s robust AI-driven capabilities to enhance its existing solution portfolio.
The integration of Splunk’s technology is expected to bolster Cisco’s offerings, providing customers with advanced data utilization capabilities. This strategic alignment aligns with Cisco’s vision to revolutionize data connectivity and protection across various aspects of organizations. The transaction is projected to yield positive cash flow and gross margin accretion for Cisco in fiscal year 2025, with further accretion expected in fiscal year 2026.
Chuck Robbins, Cisco’s Chair and CEO, expressed excitement over the official inclusion of Splunk into Cisco’s ecosystem. He highlighted the transformative potential of combining the strengths of both companies, particularly in harnessing data for powering the ongoing AI revolution. Gary Steele, the President and CEO of Splunk, now assumes a pivotal role within Cisco’s executive team as the Executive Vice President and General Manager of Splunk, directly reporting to Robbins.
With Splunk’s common stock ceasing trading on NASDAQ, the acquisition represents a significant milestone for both companies. As Splunk’s capabilities become seamlessly integrated into Cisco’s operations, the collaboration aims to drive innovation and deliver enhanced value to customers in the evolving landscape of data-driven technologies.
