Cisco announces acquisition of cyber security software company Splunk for $28 billion in cash

Thanks to CTOnews.com netizens West window past, South China Daniel Wu's clue delivery! According to the news on the evening of September 21, Beijing time, Cisco announced today that it will acquire network security software company Splunk for $157a share in cash, with a total transaction value of about $28 billion.

Upon completion of the acquisition, Splunk President and CEO Gary Steele will join Cisco's senior leadership team to report to Cisco Chairman and CEO Chuck Robbins (Chuck Robbins).

Founded in 2003 and headquartered in San Francisco, Splunk is a network security company that helps companies monitor and analyze their data to minimize the risk of hacker attacks and solve some technical problems more quickly.

"We are pleased to bring Cisco and Splunk together," Robbins said. "the merger of the two companies will be able to drive the next generation of AI-based security and surveillance. From threat detection and response to threat prediction and prevention, we will help organizations of all sizes be safer and more resilient."

Splunk President and CEO Gary Steele said: "the merger with Cisco represents the next phase of Splunk's growth journey, which will accelerate our mission to help organizations around the world become more resilient while providing more value to shareholders."

In today's super-connected world, data is ubiquitous, and every organization relies on it to run its business and make mission-critical decisions. However, in the face of the accelerated development and popularization of generative artificial intelligence, the expanding threat, and multi-cloud environment, it has brought unprecedented complexity to all kinds of organizations. They need a better way to manage, protect, and unlock the true value of data, and to maintain digital resilience. And Cisco and Splunk will work together to meet these challenges.

Cisco said it expected to drive positive cash flow and gross profit margin growth in the first fiscal year after the deal, and earnings per share growth in the second year (based on non-GAAP). In addition, it will accelerate Cisco's revenue and gross margin growth.

The deal will not affect Cisco's previously announced share buyback and dividend plans. Currently, the deal has been unanimously approved by the board of directors of Cisco and Splunk and is expected to be completed by the end of the third quarter of 2024.