Cisco Systems Inc. agreed to acquire Splunk Inc., In a deal estimated at roughly $28 billion, marking both the company’s largest acquisition to date and a significant foray into software and AI-powered data analysis.
According to a joint statement released on Thursday, Cisco would pay $157 per share in cash, a 31% premium over Splunk’s previous closing price.
Cisco has a reputation of building the company through acquisitions, but it has tended to stay away from the really huge ones.
Splunk will provides it with an observability platform that could fit nicely into its security business to help customers better understand security threats, but it can also help parse oodles of log data to resolve other problems, such as understanding system failures or troubleshooting a wide range of enterprise systems.
Cisco CEO and board chair Chuck Robbins said “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 organizations of all sizes more secure and resilient,” Robbins said in a statement.
Splunk president and CEO Gary Steele said “Uniting with Cisco represents the next phase of Splunk’s growth journey, accelerating our mission to help organizations worldwide become more resilient, while delivering immediate and compelling value to our shareholders.”
Both company boards have already approved the deal, but it will have to pass regulatory muster, not a given considering the intense scrutiny these kinds of deals are facing across the world.
The companies believe if all goes well, the deal will close sometime in the third quarter next year.
