Cisco Acquiring Cybersecurity Company Splunk in Cash Deal Worth $28 Billion
Cisco is acquiring cybersecurity software company Splunk for $157 a share in a cash deal worth about $28 billion, the company said Thursday. The acquisition is one of Cisco’s largest, and continues an acquisition streak which has built out the company’s cybersecurity offerings. Splunk shares rose 20% in premarket trading, while Cisco shares slipped 5%. “From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient,” Cisco chair and CEO Chuck Robbins said in a statement. The deal is expected to close in the third quarter of 2024. Cisco expects the deal to be cash flow positive and gross margin accretive in the first year following the closing of the acquisition; it will be accretive to Cisco’s non-GAAP earnings per share by the second year. The company will finance the deal with a combination of cash and debt, Robbins said. “Together, we will become one of the largest software companies globally,” he said in a conference call with analysts.