Cisco Acquires Splunk: Boosts Digital Protection

Cisco has successfully finalized its acquisition of Splunk, marking a significant milestone in enhancing visibility and insights across digital landscapes. This union aims to empower organizations with comprehensive connectivity and protection, crucial in navigating the evolving digital landscape.

Chuck Robbins, Chair and CEO of Cisco, expressed excitement about welcoming Splunk into the Cisco family, emphasizing their commitment to revolutionizing data utilization for enhanced organizational connectivity and protection.

Gary Steele, Executive Vice President and General Manager at Splunk, highlighted the substantial value this collaboration brings to customers worldwide, emphasizing the unparalleled visibility and resilience offered through their combined expertise in security and observability solutions.

The integration of Splunk into Cisco’s ecosystem is poised to fuel the AI revolution by providing the infrastructure, data, security, and observability platforms necessary for leveraging AI effectively. Stephen Elliot from IDC praised this transformative combination, underscoring the potential for unlocking higher levels of business value.

Industry leaders, including Julie Sweet, Chair and CEO of Accenture, commended Cisco on this acquisition, foreseeing promising opportunities for clients in the future.

The synergy between Cisco and Splunk promises a host of benefits for customers, partners, and developers, including enhanced security, observability, networking, AI capabilities, and economic efficiencies. The unified approach is expected to streamline operations, drive better outcomes, and reduce costs for organizations of all sizes.

Furthermore, the collaboration will foster innovation within global developer and partner communities, paving the way for new revenue streams through high-value services and AI-powered solutions.

Customers can anticipate a wave of product innovations resulting from the integration of Splunk, with showcases planned at upcoming events like Cisco Live and .conf24.

In terms of transaction details, Cisco acquired Splunk for $157 per share in cash, totaling approximately $28 billion in equity value. The transaction is projected to be cash flow positive and non-GAAP gross margin accretive by Cisco’s fiscal year 2025, with non-GAAP EPS accretive by fiscal year 2026. Additionally, it is expected to drive revenue growth and non-GAAP gross margin expansion for Cisco.