The combination of the two companies with complementary capabilities in AI, security and observability will provide better security analytics and coverage from devices to applications to clouds and help make organisations of all sizes more secure and digitally resilient
Splunk to be acquired by Cisco in $28bn deal. (Credit: Travis Wise/Wikipedia.org)
US-based Cisco Systems has signed a definitive agreement to acquire cybersecurity and observability firm Splunk in a deal worth about $28bn.
According to the terms of the agreement, the American technology company will pay Splunk shareholders $157 per share in cash.
Founded in 2003, Splunk supports organisations to keep their mission-critical systems secure and reliable.
The publicly listed firm helps companies prevent security, infrastructure and application issues from developing into major incidents, absorb shocks from digital disruptions and expedite digital transformation.
Splunk president and CEO Gary Steele said: “Uniting with Cisco represents the next phase of Splunk’s growth journey, accelerating our mission to help organisations worldwide become more resilient, while delivering immediate and compelling value to our shareholders.”
According to Cisco, the combination of the two companies with complementary capabilities in artificial intelligence (AI), security and observability will provide better security analytics and coverage from devices to applications to clouds.
Besides, it will help make organisations of all sizes more secure and digitally resilient.
Both companies also aim to offer observability across hybrid and multi-cloud environments, allowing customers to deliver smooth application experiences to drive their digital businesses.
The combination of Cisco and Splunk will move organisations from threat detection and response to threat prediction and prevention, said the former.
Furthermore, the acquisition will enable greater investments in new solutions, accelerated innovation and increased global scale to support the needs of customers of all sizes.
Cisco chair and CEO Chuck Robbins said: “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 organisations of all sizes more secure and resilient.”
Subject to regulatory approval and other customary conditions including approval by Splunk shareholders, the transaction is anticipated to be complete by Q3 2024.