Gary Steele, Splunk’s current President and CEO, will soon be integrated into Cisco’s Executive Leadership Team, directly under Chair and CEO Chuck Robbins, according to the announcement.
Splunk’s long-established forte in enhancing digital resilience complements Cisco’s commitment to forging secure connections. Together, the synergy of these two AI, security, and observability pioneers aims to fortify organizations against potential threats.
Chuck Robbins, CEO of Cisco, expressed his enthusiasm for the merger, emphasizing the collaboration’s potential to revolutionize AI-enabled security and observability. Robbins said:
“We aim to transition from mere threat detection to proactive threat prediction and prevention, reinforcing security for organizations of varied scales.”
Gary Steele shared this sentiment, viewing the merger as a significant leap in Splunk’s growth trajectory.
By combining our strengths, we envision setting industry benchmarks in security and observability, harnessing data and AI for superior customer outcomes.
Given the growing complexity of managing vast data in today’s hyperconnected environment, the merger addresses the pressing demand for enhanced data management, protection, and utilization.
Specifically, Splunk’s security expertise will boost Cisco’s existing portfolio, paving the way for unparalleled security analytics, extending from devices to cloud applications.
Their combined strength promises unmatched observability across hybrid and multi-cloud platforms, ensuring seamless application experiences.
The acquisition will further drive investments in novel solutions, speeding up innovation and amplifying their global reach to cater to an expansive customer base.
Both companies share a reputation for their purpose-driven ethos, cultural values, and exceptional talent. Their union promises to cultivate an environment of innovation and inclusion, attracting top software talent.
Regarding transaction specifics, the $28 billion deal is anticipated to enhance Cisco’s revenue growth and gross margin, and is predicted to be cash flow positive in its inaugural fiscal year.
This acquisition is expected to conclude by the third quarter of 2024, awaiting approval from Splunk shareholders and other regulatory bodies.
Cisco has reassured stakeholders that this deal will not affect its existing share buyback or dividend programs. Further details of the agreement can be gleaned from Cisco’s forthcoming Form 8-K report related to the transaction.