Cisco and Splunk have announced a definitive agreement for Cisco to acquire Splunk for approximately $28 billion in cash. This acquisition will make Cisco and Splunk one of the largest software companies in the world and will enhance Cisco’s strategy to securely connect everything. The combination of these two leaders in AI, security, and observability will help organizations become more secure and resilient.
The acquisition is expected to be cash flow positive and gross margin accretive in the first fiscal year post-close, and non-GAAP EPS accretive in year two. It will also accelerate revenue growth and gross margin expansion for Cisco.
The union of Cisco and Splunk will provide observability across hybrid and multi-cloud environments, enabling customers to deliver smooth application experiences. Both companies are well-positioned to harness the power of AI and will continue to invest in new solutions and innovation. This acquisition will also unite two “Great Places to Work” with a shared passion for innovation and inclusion.
The transaction is expected to close by the end of the third quarter of 2024, subject to regulatory approval and other closing conditions.
In conclusion, Cisco’s acquisition of Splunk will create a global leader in security and observability, leveraging the power of data and AI. This partnership will benefit both organizations and their customers, driving innovation and delivering excellent customer outcomes. What are your thoughts on this transformative acquisition? Comment below and let us know!
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