A new dawn has arrived for data management as Cisco finalizes its acquisition of Splunk, promising a transformative era for companies harnessing data to fortify and interconnect every facet of their operations.
Summary of Developments
Cisco now stands uniquely positioned to propel, shield, and propel the AI revolution for its clientele.
The integration of Cisco’s network prowess with cutting-edge security and observability solutions promises unparalleled digital insights.
The acquisition propels Cisco into the ranks of the world’s largest software enterprises.
SAN JOSE, Calif., March 18, 2024 /PRNewswire/ — Cisco (NASDAQ: CSCO) announced today the successful completion of its acquisition of Splunk, marking a pivotal step toward providing unmatched visibility and strategic insights across the entire digital landscape of organizations.
Thriving in the evolving digital landscape demands seamless connectivity and robust protection across all fronts. Enterprises seek to integrate people, systems, applications, and devices while safeguarding their digital assets against cybersecurity threats, downtimes, and other operational hazards.
Cisco is poised to merge the potency of its network infrastructure with leading-edge security and observability solutions to offer a holistic view of the digital terrain in real-time. This unified approach empowers teams to proactively safeguard critical infrastructure, preempt disruptions, and elevate network performance.
Chuck Robbins, Chair and CEO of Cisco, expressed enthusiasm about the union, stating, “We are excited to officially welcome Splunk to the Cisco family. As a prominent player in the software realm, we are poised to revolutionize how our customers leverage data to fortify and interconnect every facet of their organization, while contributing to the advancement of the AI revolution.”
Gary Steele, Executive Vice President and General Manager at Splunk, emphasized the collaborative benefits, stating, “The amalgamation of Cisco and Splunk will deliver unparalleled visibility and insights across an organization’s entire digital landscape, fostering unparalleled resilience through an expansive suite of security and observability solutions.”
Empowering the AI Revolution
The ascent and influence of AI surpass any technological advancement witnessed to date. Leveraging data effectively at scale is paramount to unlocking the transformative potential of AI and facilitating unprecedented outcomes. Cisco’s comprehensive suite of solutions encompasses the infrastructure, data, security, and observability platforms vital for AI’s success.
Stephen Elliot, Group Vice President at IDC, highlighted the transformative potential of the Cisco-Splunk synergy, stating, “The convergence of Cisco and Splunk presents unprecedented opportunities for networking, security, and operations executives. This synergy unlocks new levels of business value for customers.”
Julie Sweet, Chair and CEO of Accenture, extended congratulations to Cisco on the acquisition, underscoring the prospects for collaborative growth and innovation.
Synergistic Advantages: Enhancing Value for Customers, Partners, and Developers
The integration of Cisco and Splunk promises:
Enhanced Security: A robust security solution spanning threat prevention, detection, investigation, and response, bolstered by cloud, network, and endpoint visibility.
Comprehensive Observability: A full-stack observability solution ensuring optimal digital experiences across multi-cloud hybrid environments.
Leading Networking Solutions: Secure networking solutions built on resilient, intelligent infrastructure.
AI Empowerment: Cisco’s networking prowess, coupled with advanced security and observability, enables secure AI integration across organizations and applications.
Economic Benefits: The platform approach streamlines operations, drives superior outcomes, and reduces costs for customers.
The alliance between Cisco and Splunk extends to global developer and partner communities, fostering innovation through tailored applications and AI-driven solutions.
In the coming months, customers can anticipate a slew of product innovations across the portfolio, reflecting the integration of Splunk’s capabilities. These advancements will be showcased at Cisco Live, June 2-4, 2024, and .conf24, June 11-14, 2024.
Transaction Details
Under the terms of the agreement, Cisco acquired Splunk for $157 per share in cash, amounting to approximately $28 billion in equity value. The transaction is projected to enhance Cisco’s cash flow and non-GAAP gross margin in fiscal year 2025, with non-GAAP EPS accretion anticipated in fiscal year 2026. Additionally, it is expected to fuel revenue growth and non-GAAP gross margin expansion for Cisco.
Cisco and Splunk have notified NASDAQ of the acquisition’s completion, with Splunk’s common stock ceasing trading on NASDAQ prior to the market opening today.
About Cisco
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Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Readers should exercise caution regarding forward-looking statements, as they are subject to inherent uncertainties beyond management’s control. Actual results may differ materially from anticipated outcomes due to various factors, including integration challenges, economic conditions, and regulatory developments.
Non-GAAP Information
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