Cisco to Acquire Splunk for $28 Billion

In a significant move in the tech industry, Cisco and Splunk, a leading player in cybersecurity and observability, have formalized their merger in a definitive agreement. Cisco’s intention to acquire Splunk for $157 per share in cash, totaling approximately $28 billion in equity value, was announced today. Upon completion of the acquisition, Gary Steele, President and CEO of Splunk, will join Cisco’s Executive Leadership Team, reporting directly to Chair and CEO Chuck Robbins.

This acquisition marks a strategic step forward, leveraging Splunk’s established track record of bolstering digital resilience for organizations. It also accelerates Cisco’s mission to create secure connections across the digital spectrum, facilitating limitless possibilities. The combined expertise of these two AI, security, and observability giants is poised to fortify the security and resilience of organizations on a global scale.

Chuck Robbins, Chair and CEO of Cisco, expressed his enthusiasm about the merger, stating, “We’re excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability, from threat detection and response to threat prediction and prevention, making organizations of all sizes more secure and resilient.”

Gary Steele, President and CEO of Splunk, shared his perspective on this significant development: “Uniting with Cisco represents the next phase of Splunk’s growth journey, accelerating our mission to help organizations worldwide become more resilient, while delivering immediate and compelling value to our shareholders. Together, we will form a global security and observability leader that harnesses the power of data and AI to deliver excellent customer outcomes and transform the industry.”

In an era of unparalleled data ubiquity, where organizations rely on data for daily operations and critical decision-making, the complexity has reached unprecedented levels. With the emergence of generative AI, expanding threat landscapes, and diverse cloud environments, a robust solution for managing, protecting, and unlocking the full potential of data is essential to maintaining digital resilience.

The collaboration between Cisco and Splunk aims to tackle these challenges head-on. Their complementary strengths in AI, security, and observability will unlock the true value of data and bolster the digital resilience of organizations of all sizes.

Notably, Splunk’s security capabilities complement Cisco’s existing portfolio, promising leading security analytics and coverage from devices to applications to cloud environments. Moreover, the combined capabilities of Cisco and Splunk will offer observability across hybrid and multi-cloud environments, enabling customers to ensure smooth application experiences that power their digital enterprises. The scale, data visibility, and trust foundation of both companies position them ideally to help customers responsibly harness the power of AI.

The merger between these two organizations will pave the way for greater investments in innovative solutions, accelerated technological advancements, and expanded global outreach to cater to customers of all dimensions.

Beyond their technological prowess, Cisco and Splunk share a reputation for being purpose-driven, with aligned values, strong corporate cultures, and highly skilled teams. This acquisition is set to unite two “Great Places to Work” with a mutual commitment to innovation and inclusion, making it an attractive destination for software talent and maintaining its status as an excellent workplace.