Cisco completes its $28 billion acquisition of Splunk

2024-03-18 · Publisher : Cisco · Domain : Cloud & DevOps

Cisco closes its acquisition of Splunk for about $28 billion in cash, or $157 per share, bringing networking, security and observability under one roof.

### Background On 18 March 2024, Cisco announced it had completed the acquisition of **Splunk**, a leading vendor of logging, monitoring and SIEM software. The price is about **$28 billion** in equity value, or **$157 per share** paid in cash. Gary Steele, until then Splunk's chief executive, becomes executive vice president and general manager of Splunk within Cisco. ### Key facts - Price: about $28 billion in equity value, $157 per share in cash. - Cisco presents the deal as a "platform approach" combining networking, security and observability. - Announced financial effect: positive cash flow (excluding acquisition-related items) and higher non-GAAP gross margin in fiscal 2025, higher non-GAAP earnings per share in fiscal 2026. - First joint innovations promised at Cisco Live (2-4 June 2024) and then at Splunk's .conf24 conference (11-14 June 2024). ### Why it matters For IT leaders running Splunk, the vendor of their monitoring and detection tool is now a networking equipment maker. Roadmaps, contracts and integrations with Cisco products deserve close attention, as do licence renegotiations at renewal. More broadly, the deal confirms the consolidation of the observability market around large security and networking players. ### Takeaway The Splunk acquisition makes observability a chapter of Cisco's platform strategy and opens a series of consolidations in the sector.

Tags : Observabilité, Acquisition, Sécurité, États-Unis