According to the regulator, Cisco Systems' acquisition of Splunk would not lead to competition concerns and the deal has limited impact on competition in the markets where the companies are active, as there are enough competitors
Cisco's $28bn acquisition of cybersecurity firm Splunk gets EC clearance. (Credit: Cisco Systems Inc.)
The European Commission (EC) has approved Cisco Systems’ previously announced $28bn acquisition of US-based cybersecurity and observability firm Splunk.
Cleared under the European Union (EU) Merger Regulation, the deal relates mainly to the IT software sector, said the EC.
According to the regulator, Cisco Systems’ acquisition of Splunk would not lead to competition concerns.
The EC said the deal has limited impact on competition in the markets where the companies are active, as there are enough competitors.
In addition, the Commission concluded that the merged entity would not have the ability to engage in any foreclosure strategy.
The EC examined the Cisco Systems-Splunk transaction under the normal merger review procedure.
Cisco Systems announced the deal with Splunk in September last year.
Under the terms of the agreement, the American technology company will pay Splunk shareholders $157 per share in cash.
Established 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.
Through the combination of the two companies with complementary capabilities in artificial intelligence (AI), security and observability, Cisco Systems intends to offer better security analytics and coverage from devices to applications to clouds.
Besides, both companies aim to offer observability across hybrid and multi-cloud environments, enabling customers to deliver smooth application experiences to drive their digital businesses.
Last month, Cisco Systems revealed plans to lay off nearly 5% of the company’s workforce in a move to restructure the organisation and allow further investment in key priority areas.