Cisco Systems has announced the acquisition of cybersecurity company Splunk for $28 billion. This is the largest deal in the company’s history and, at least for now, the biggest acquisition in this sector in 2023, with the motivation for the acquisition being, according to Reuters, the strengthening of its software business and bolstering in the field of artificial intelligence.
Following the announcement of the planned acquisition, Splunk’s shares jumped 23 percent on the stock market, but were still about $10 below Cisco’s offered price of $157 per share. On the other hand, Cisco’s shares fell by nearly five percent.
– Cisco and Splunk will together become one of the largest software companies in the world – the companies announced in a joint statement.
The deal, which has been unanimously approved by the boards of directors of both companies, is expected to close by the end of the third quarter of 2024.
Cisco has stated that it expects the acquisition to have a positive impact on its brand and to increase gross margin in the first fiscal year following the closing of the deal.
Splunk’s technology helps companies monitor and analyze their data to reduce the risk of hacking and resolve technical issues more quickly, while Cisco has long been the world’s largest manufacturer of computer networking equipment, strengthening its cybersecurity business to meet customer demands and drive growth.
Cisco CEO Chuck Robbins emphasized the importance of artificial intelligence that comes with Splunk’s software protection technology.
– Our combined capabilities will drive the next generation of security and visibility enabled by artificial intelligence. From detecting and responding to threats to predicting and preventing threats, we will help organizations of all sizes to be safer and more resilient – Robbins stated.
