The merger will also enhance Cisco's defenses against potential security threats, particularly those associated with the increasing use of artificial intelligence. Earlier this year, Splunk launched a new line of AI offerings aimed at enabling companies to detect and respond to data anomalies more quickly. The deal still requires approval from Splunk shareholders. Following the announcement, Cisco's shares fell nearly 4% while Splunk's surged by over 20%.
Key takeaways:
- Cisco Systems Inc. is set to acquire cybersecurity firm Splunk in a $28 billion deal, marking Cisco's largest acquisition to date.
- The acquisition represents a significant move for Cisco into software and AI-powered data analysis, and is part of a broader effort to bolster defenses against potential security threats.
- Cisco will pay $157 per share in cash, a 31% premium to Splunk’s previous closing price, with the deal value representing about 10% of Cisco’s market value.
- The deal, which has been approved by the boards of both companies, is expected to close by the end of the third quarter of 2024, pending approval from Splunk shareholders.