Cisco has completed the acquisition of Splunk. Under the terms of the agreement, Cisco acquired Splunk for $157 per share in cash, representing approximately $28 billion in equity value. The transaction is expected to be cash flow positive (excluding certain acquisition-related and other items) and non-GAAP gross margin accretive in Cisco’s fiscal year 2025, and non-GAAP earnings per share (EPS) accretive in fiscal year 2026. Additionally, it will accelerate Cisco’s revenue growth and non-GAAP gross margin expansion.
According to Cisco, it will bring the full power of the network, together with market-leading security and observability solutions, to deliver a real-time unified view of the entire digital landscape, helping teams proactively defend critical infrastructure, prevent outages, and refine the network experience. Cisco and Splunk also bring together global developer and partner communities with extensive experience extending security, observability, and data platform capabilities with pre-packaged applications and solutions for customers. As per the companies, their collective partner ecosystem can create new profitable revenue streams through high-value services and by deploying innovative new applications and artificial intelligence (AI)-powered solutions.
Commenting on the acquisition, Chuck Robbins, chair and chief executive officer, Cisco, said, “We are thrilled to officially welcome Splunk to Cisco. As one of the world’s largest software companies, we will revolutionise the way our customers leverage data to connect and protect every aspect of their organization as we help power and protect the AI revolution.”
Meanwhile, Gary Steele, executive vice president and general manager, Splunk, said, “Uniting Splunk and Cisco will bring tremendous value to our joint customers worldwide. The combination of Cisco and Splunk will provide truly comprehensive visibility and insights across an organisation’s entire digital footprint, delivering an unprecedented level of resilience through the most extensive and powerful security and observability product portfolio on the market.”
