Image credit: Sora Shimazaki via Pexels
Cisco and Splunk have announced an earth-shaking acquisition agreement valued at $28 billion in equity. In the deal, Cisco will acquire Splunk at $157 per share in cash.
Towards AI-Powered Security
This move aims to cement Cisco’s position as a global technology leader: this time, as a solid provider of cybersecurity suites. Splunk President and CEO Gary Steele will join Cisco’s Executive Leadership Team and report to Chair and CEO Chuck Robbins.
The acquisition extends Splunk’s legacy of enhancing digital resilience in organizations. The partnership is expected to drive innovation in AI-powered security and observability. Cisco’s Chair and CEO, Chuck Robbins, states that the union will cover the entire spectrum of cybersecurity, from threat detection to predictive prevention.
Gary Steele, President and CEO of Splunk, also expressed enthusiasm about the alliance. The move aligns with Splunk’s mission to improve global resilience and deliver value to shareholders. The collaboration aims to create a global leader in security and observability, with strong points in data and AI to enhance customer outcomes.
Stepping Up to Increasing Threats
Complexity in computing has surged due to generative AI, increased threat surfaces, and multiple cloud environments. Cisco and Splunk, with their expertise in AI, security, and observability, are joining hands to address these challenges.
Splunk’s security capabilities will complement Cisco’s portfolio. It will enable advanced security analytics across devices, applications, and cloud platforms.
Additionally, the partnership will enable observability across hybrid and multi-cloud environments. This leads to smooth application experiences for organizations. Cisco and Splunk, with their scale and trustworthiness, are uniquely positioned to support responsible AI utilization.
A Boost in R&D and Scalability
The merger will drive investments in innovative solutions, accelerate R&D efforts, and enhance global scalability to serve customers of all sizes. Cisco and Splunk share a commitment to innovation and inclusivity, making them attractive destinations for top-tier software talent.
The acquisition details indicate Cisco’s purchase of Splunk for $157 per share in cash. The deal is expected to close by the end of the third quarter of calendar year 2024, subject to regulatory and shareholder approvals.
