Cisco on Thursday announced that it has entered into a definitive agreement to acquire data analysis, security and observability solutions provider Splunk (NASDAQ: SPLK) in a deal valued at $28 billion.
The networking giant is prepared to pay $157 per share in cash for Splunk, with the acquisition expected to close by the end of the third quarter calendar year 2024. Cisco said the deal will help accelerate revenue growth and gross margin expansion.
Following the acquisition, Splunk President and CEO Gary Steele will join Cisco’s executive team and will report to Cisco CEO and Chair Chuck Robbins.
Splunk’s AI, security and observability capabilities complement Cisco’s offering.
“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,” Steele said.
Robbins commented, “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, we will help make organizations of all sizes more secure and resilient.”
News of the Splunk acquisition comes just months after Cisco announced buying cloud network security firm Valtix, cloud security company Lightspin, email security firm Armorblox, and identity threat detection and response startup Oort ID.