Cisco To Buy Splunk for $28B
- By Kurt Mackie
- September 21, 2023
In a Thursday announcement, Cisco announced it is acquiring security and IT solutions provider Splunk for about "$28 billion in equity value."
If the acquisition gets cleared, it will "create one of the largest software companies globally," said Chuck Robbins, Cisco's chair and CEO, in a blog post. The deal has already been approved by both companies' boards, but it still requires Splunk shareholder approval, plus regulatory approvals. It is expected to close "by the end of the third quarter of calendar year 2024."
Cisco is well known for its many networking hardware products, but it also has its own security solutions, including the Cisco Security Cloud. Robbins suggested it would get enhanced with Splunk on board:
The Cisco Security Cloud has visibility into vast amounts of security data -- network data, identities, emails, web traffic, endpoints, and processes. With Splunk, Cisco is adding one of the world's best data platforms to Cisco's robust security portfolio. The combination of Splunk and Cisco will help businesses move from threat detection and response to threat prediction and prevention, making organizations of all sizes more secure and resilient.
The two companies also will pool efforts to bolster security using generative artificial intelligence (AI), Robbins added. The use of AI to enhance their joint products was a recurrent theme throughout the announcements.
Cisco and Splunk previously were partners, offering complementary products, noted Gary Steele, Splunk's president and CEO, in a blog post. The acquisition will have the effect of expanding Splunk's markets as well as accelerating innovation, he added:
Cisco's world-class go-to-market engine and extensive global network of trusted partners can bring Splunk's enterprise-grade AI-powered, security and observability solutions to even more customers worldwide. At the same time, we will have the opportunity to accelerate the pace of innovation and develop game-changing solutions to help businesses access, analyze and act on data faster and more securely than ever before.
Their complementary products "will provide observability across hybrid and multi-cloud environments enabling the company's customers to deliver smooth application experiences that power their digital businesses," the announcement indicated.
Cisco held a discussion by top executives on Sept. 21 regarding the deal in an online investor relations presentation, which is available for viewing on demand here.
Kurt Mackie is senior news producer for 1105 Media's Converge360 group.