Cisco has decided to bet on cybersecurity and observability with the Splunk purchase, a company specialized in online security, which is responsible for offering information monitoring and analysis services to its clients, focused on minimizing the risk of cyberattacks and resolving incidents. About two years after trying to buy the company for the first time, he has finally managed to make the operation go ahead.
The operation assumes that Cisco will pay $157 in cash for each Splunk share, which leads to the operation having a price of about $28 billion. When it closes, what is currently the CEO and President of Splunk, Gary Steelewill join Cisco’s management team, reporting directly to the Cisco CEO and President Chuck Robbins.
With the integration of Splunk, Cisco will accelerate its connection security integration strategy, so its customers can be more secure and increase their level of resilience. The capabilities of both companies are complementary, and their combination will bring observability to hybrid and multi-cloud environments, with coverage from devices to applications to clouds.
Splunk’s security capabilities complete Cisco’s security services portfolio. Additionally, both Cisco and Splunk are well positioned to offer their customers a way to take advantage of Artificial Intelligence.
The operation, approved unanimously by the management of both companies, will not affect the share repurchase program or the dividend program that Cisco had already announced. If all goes as planned, it will close at the end of the third quarter of 2024.
Chuck Robbins has stressed that at Cisco they are «excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability. From threat detection and response to threat prediction and prevention, we will help organizations of all sizes become more secure and resilient.”
For his part, Gary Steele has highlighted of the operation that «the Joining Cisco represents the next phase of Splunk’s growth journey, accelerating our mission to help organizations around the world become more resilient, while delivering immediate and decisive value to our shareholders. Together, we will form a global leader in security and observability that harnesses the power of data and artificial intelligence to deliver great results for clients and transform the industry. We are delighted to join forces with a trusted partner who shares our passion for innovation and customer experience around the world, and we look forward to our community of Splunk employees benefiting from even greater opportunities as we bring together two respected organizations and with an inclusive purpose.