Cisco yesterday announced it has completed the acquisition of Splunk, setting the foundation for delivering unparalleled visibility and insights across an organization's entire digital footprint.
Under the terms of the agreement, Cisco acquired Splunk for $157 per share in cash, representing approximately $28 billion in equity value. The transaction is expected to be cash flow positive (excluding certain acquisition related and other items) and non-GAAP gross margin accretive in Cisco's fiscal year 2025, and non-GAAP EPS accretive in fiscal year 2026. Additionally, it will accelerate Cisco's revenue growth and non-GAAP gross margin expansion.
Cisco and Splunk notified NASDAQ of the completion of the acquisition and requested that NASDAQ file a notification of delisting with the Securities and Exchange Commission on Splunk's behalf. Splunk's common stock ceased trading on NASDAQ prior to the opening of trading today.
The combination of Cisco and Splunk will provide customers with better visibility, networking and AI, bringing together global developer and partner communities with extensive experience to extend security, observability, and data platform capabilities with pre-packaged applications and solutions for customers. Their collective partner ecosystem can create new profitable revenue streams through high-value services and by deploying innovative new applications and AI-powered solutions.
Over the next several months, customers can expect a number of new product innovations across the portfolio with the integration of Splunk.
Chuck Robbins, Chair and CEO, Cisco
We are thrilled to officially welcome Splunk to Cisco. As one of the world's largest software companies, we will revolutionize the way our customers leverage data to connect and protect every aspect of their organization as we help power and protect the AI revolution.
Gary Steele, Executive Vice President, General Manager, Splunk
Uniting Splunk and Cisco will bring tremendous value to our joint customers worldwide. The combination of Cisco and Splunk will provide truly comprehensive visibility and insights across an organization's entire digital footprint, delivering an unprecedented level of resilience through the most extensive and powerful security and observability product portfolio on the market.
Stephen Elliot, Group Vice President, I&O, Cloud Operations and DevOps, IDC
Cisco and Splunk is a transformative combination that will allow customers to do things that weren't possible before. With the close, Cisco has created a unique set of solutions for networking, security, and operations executives in the market. When you add that to their channel and AI investments, customers should be considering the higher levels of business value that can now be unlocked.
