Cisco Acquires Splunk in Record-Breaking $28 Billion Deal
Originally Published 2 years ago — by Investopedia
Cisco Systems is set to acquire cybersecurity software company Splunk for $28 billion in a move seen as an aggressive strategic play in the cybersecurity market. The deal, priced at a 30% premium over Splunk's previous closing price, is seen as a warning shot to competitors in the AI-driven cybersecurity software space. Cisco shares declined while Splunk shares rose over 20% following the announcement. The acquisition is expected to accelerate revenue growth and gross margins at Cisco, with Splunk's President and CEO joining Cisco's executive team. Analysts believe this "monster deal" could trigger a wave of software M&A.