Cisco acquires Splunk in record-breaking $28 billion cash deal

Cisco Systems has agreed to acquire cybersecurity firm Splunk for approximately $28 billion, marking its largest-ever deal. The acquisition aims to strengthen Cisco's software business and take advantage of the growing demand for artificial intelligence. The deal will help reduce Cisco's reliance on its networking equipment business, which has faced challenges in recent years. Splunk is known for its expertise in data observability and offers a subscription-based pricing model. The acquisition is expected to accelerate revenue growth and gross margin expansion for Cisco. While there may be some regulatory scrutiny, Cisco is confident that the deal will not face major antitrust challenges. The transaction is set to close by the end of the third quarter of 2024, subject to regulatory approvals.