FX.co ★ Cisco Completes Acquisition Of Splunk

Cisco Systems, Inc., a premier global technology leader, reported on Monday that it had successfully concluded its purchase of Splunk. Valued at $157 per share in cash, the acquisition equates to an estimated equity value of around $28 billion.

This collaborative venture between Cisco and Splunk is set to provide multiple advantages to clients, including bolstered security solutions for threat prevention, detection, investigation, and response applicable to businesses of all sizes.

More benefits of the acquisition comprise the provision of an optimized digital experience within a multi-cloud hybrid setting, secure networking facilitated by smart and robust infrastructure, better integration of AI within businesses and software applications, and a platform-centric approach adopted by Cisco and Splunk to improve business outcomes and curtail costs.

In terms of fiscal prospects, the business deal is predicted to generate positive cash flow and contribute to non-GAAP gross margin accretion for Cisco in the fiscal year 2025. The non-GAAP earnings per share accretion are expected to rise for the fiscal year 2026.

In addition, experts foresee the acquisition substantially speeding up revenue growth and leading to the expansion of the non-GAAP gross margin for Cisco.