Cisco announced that it will acquire cybersecurity and observability company Splunk for $157 per share in cash, representing approximately $28 billion in equity value.
Forbes reported that the acquisition marks “one of the largest acquisitions of 2023 and the AI era”.
Splunk’s AI powered security and observability offerings are used by organizations worldwide. The company has the likes of Coca Cola, Honda, Dominos and Hyatt as key customers. It holds over 1,100 patents in the field.
Post the acquisition, Splunk President and CEO Gary Steele will join Cisco’s Executive Leadership Team reporting to Chair and CEO Chuck Robbins.
With the addition of Splunk capabilities and and products to the portfolio, Cisco aims to address the security concerns arising from the accelerated adoption of Generative AI and multicloud environments. The company said that Splunk’s security capabilities complement Cisco’s existing portfolio, and together, will provide security analytics and coverage from devices to applications to clouds.
“We’re excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability,” said Chuck Robbins, chair and CEO of Cisco. “From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient.”
