Cisco is acquiring cybersecurity firm Splunk in a $28 billion deal to better protect against potential security threats that could be heightened by the growing use of artificial intelligence.
The Silicon Valley networking technology giant will pay $157 per share for Splunk Inc.
“Our combined capabilities will power the next generation of AI-powered security and observability,” Cisco Chairman and CEO Chuck Robbins said in a prepared statement. Deaf,” he said. “From threat detection and response to threat prediction and prevention, we help organizations of all sizes become more secure and resilient.”
Wedbush’s Dan Ives thinks the deal is a smart move for Cisco.
“Cisco is focused on next-generation security and observability powered by AI, and with Splunk’s highly regarded and unique platform, this is the right move at the right time for Cisco to be proactive in cybersecurity.” “We believe this will be a major strategic development,” he said in a memo. client. “For Cisco, this means that the tech heavyweight is not sitting idle in this market and is gaining market share over the next few years against companies like Palo Alto, Checkpoint, CrowdStrike, Microsoft, and Zscaler. It’s a shot that shows we’re actively working to acquire them.”
The boards of directors of both companies have approved the acquisition, which is expected to close by the end of the third quarter of 2024. It still needs approval from Splunk shareholders.
Cisco Systems stock fell nearly 4% in early trading Thursday, while Splunk stock rose more than 20%.