March 18, 2024 at 10:21AM
Cisco completed its $28 billion acquisition of Splunk. The networking giant paid $157 per share in cash for Splunk, a leader in data analysis, security, and observability tools. Cisco plans to use Splunk’s capabilities to enhance its solution portfolio, expecting positive cash flow and EPS impact in fiscal years 2025 and 2026. Splunk’s CEO joins Cisco’s executive team.
Key takeaways from the meeting notes:
– Cisco (NASDAQ: CSCO) completed a $28 billion acquisition of Splunk on Monday, paying $157 per share in cash for the company.
– Splunk is a major player in data analysis, security, and observability tools.
– Cisco plans to leverage Splunk’s AI, security, and observability capabilities to enhance its solution portfolio.
– The transaction is expected to have a positive impact on cash flow, gross margin, and EPS for Cisco in fiscal years 2025 and 2026.
– Chuck Robbins, Chair and CEO of Cisco, expressed excitement about welcoming Splunk to the company and emphasized revolutionizing the use of data to connect and protect organizations.
– Gary Steele, President, and CEO of Splunk, has joined Cisco’s executive team as Executive Vice President, General Manager, Splunk, reporting to Robbins.
– Splunk’s common stock ceased trading on NASDAQ before the opening of trading.