Cisco Systems has announced its largest-ever acquisition, agreeing to pay $28 billion for cybersecurity company Splunk. This move aligns with Cisco’s strategy to enhance its cybersecurity offerings, following recent acquisitions including Code BGP, Armorblox, and Valtix.
The acquisition of Splunk underscores Cisco’s ambition to leverage the increasing adoption of artificial intelligence while expanding its software business. The all-cash transaction is expected to close before the fourth quarter of 2024, with Cisco paying $157 per share, a 31% premium over Splunk’s last closing price. If the deal does not proceed, Cisco will incur a $1.48 billion termination fee.
In a joint statement, both companies remarked, “Combined, Cisco and Splunk will become one of the world’s largest software companies and will accelerate Cisco’s business transformation to more recurring revenue.”