Cisco Systems Finalizes $28 Billion Acquisition of Splunk in 2025
Cisco Systems has officially completed its $28 billion acquisition of cybersecurity leader Splunk, marking a significant expansion into the AI market.
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Highlights of the Acquisition
- Cisco Systems has finalized its $28 billion acquisition of Splunk at $157 per share.
- The deal closed shortly after receiving approval from European antitrust regulators.
- This strategic move enhances Cisco's position in the expanding artificial intelligence market.
Following swift regulatory clearance in Europe, Cisco Systems (CSCO) has officially closed its $28 billion purchase of cybersecurity specialist Splunk in 2024.
The integration of Splunk is set to strengthen Cisco's footprint in the burgeoning artificial intelligence (AI) sector. Cisco emphasized that leveraging AI effectively requires robust infrastructure, comprehensive data, secure platforms, and real-time observability — capabilities that Splunk brings to the table.
Gary Steele, Splunk’s Executive Vice President and General Manager, highlighted that the merger will deliver substantial value to customers worldwide. Accenture CEO Julie Sweet also expressed enthusiasm about future client opportunities stemming from this collaboration.
The all-cash transaction offers Splunk shareholders $157 per share, representing a 31% premium over the stock's previous closing price at the announcement in September 2023. Cisco projects the deal to be cash flow positive (excluding certain acquisition-related expenses) and to improve gross margins by fiscal year 2025, with expected earnings per share growth by fiscal year 2026.
On the day of the announcement, Cisco's shares rose by 0.7%, despite a 2.5% decline year-to-date.
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