Cisco Acquires Splunk – Powering the future of security and observability with AI

Highlights of the report

On September 21, 2023, Cisco bought Splunk for $28 billion in cash, making it their largest
acquisition ever. Splunk is a software company that helps businesses of all sizes improve
security, efficiency, and customer experience by providing a platform for searching,
monitoring, and analyzing machine-generated data.

As a leading provider of networking equipment and software, Cisco’s acquisition of Splunk
will allow them to expand their security portfolio and offer their customers a more
complete solution for protecting their networks and data. Both Cisco and Splunk’s boards of
directors unanimously approved the acquisition, which is expected to close by the end of
the third quarter of 2024, pending regulatory and shareholder approval.

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Cisco Systems, Inc. designs, manufactures and sells Internet Protocol-based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.

The company also offers a switching portfolio that encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

In Q4FY23, revenue increased 16% to $15.2bn as compared to $13.1bn in Q4FY22. In FY23, revenue rose 11% to $57bn from $51.6bn in the prior period due to an increase in product revenue by 13% Y/Y to $43.14bn.
Stock price showed an upward trend in the past 3-month period and gave a 4% return. The price rose by 29% in the past 1-year. The stock has a 52-week high of $58.19 and a 52-week low of $38.60.

Executive Summary
Deal Overview
Business Rationale
Company Overview – Cisco
Company Overview – Splunk

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Cisco Acquires Splunk – Powering the future of security and observability with AI



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