Tech Giant Cisco To Acquire Splunk For USD 28 Billion By CIOTechOutlook Team

Tech Giant Cisco To Acquire Splunk For USD 28 Billion

CIOTechOutlook Team | Friday, 22 September 2023, 02:39 IST

Cisco Systems agreed to pay approximately $28 billion for cybersecurity company Splunk in its largest acquisition ever, bolstering its network security division. Cisco's offer price of $157 per share in cash is a 31% premium over Splunk's most recent close.

"Combined, Cisco and Splunk will become one of the world's largest software companies and will accelerate Cisco's business transformation to more recurring revenue," the companies said in a joint statement.

Cisco shares were down nearly 5% in premarket, while trading in Splunk stock was halted, as per economic times.

Subject to regulatory approvals, the transaction, which was unanimously authorized by the boards of both Cisco and Splunk, is scheduled to close by the end of the third quarter of 2024. Cisco was advised by Tidal Partners, Simpson Thacher & Bartlett, and Cravath, Swaine & Moore. Splunk was advised by Qatalyst Partners, Morgan Stanley & Co, and Skadden, Arps, Slate, Meagher & Flom LLP.

Cisco Systems, Inc., abbreviated as Cisco, is a worldwide digital communications technology company headquartered in San Jose, California. It has a portfolio of technological advancements that is unrivaled in the industry. We assist in securely connecting industries and communities through networking, security, collaboration, cloud management, and other services.