In a strategic move, Cisco Systems has revealed its plans to acquire Splunk Inc., a leading player in the fields of cybersecurity and observability for a total consideration of US$28 billion.
"This will bring together two powerful innovation engines and create one of the largest software companies globally, " said Cisco CEO Chuck Robbins
The acquisition is part of Cisco's broader strategy to securely link everything in an ever-evolving technological landscape.
"Cisco and Splunk are two leaders with complementary capabilities across AI, security, and observability, and together we will help make organisations of all sizes more resilient and secure in an AI-powered world," Robbins added.
Cisco announces its intent to acquire @splunk, making organizations more secure and resilient in an AI-powered world. https://t.co/cmvlrwA21g pic.twitter.com/wgxU4re1yu
— Cisco (@Cisco) September 21, 2023
Technological transformation
The technological transformation underway has increased complexities, fueling the need for advanced security measures and data management.
"Data is one of the most powerful resources in business," Robbins noted, elaborating on how the fusion of Cisco's Security Cloud with Splunk's robust data platform would lead to more proactive cybersecurity solutions.
Robbins also pointed out the role of generative AI in transforming industries. "Together, Cisco and Splunk see a broad range of data across applications, security, and the network," he said.
This aligns with the goals of both companies to offer technologies that help protect, connect, and advance client missions.
#SplunkNews: We’re excited to announce that Splunk and Cisco have agreed to join forces to create one of the largest software companies globally and realize our shared vision to keep organizations worldwide secure and resilient. Read more: https://t.co/ShOk00zL7y
— Splunk (@splunk) September 21, 2023
Accelerator for business transformation
The acquisition will also serve as an accelerator for Cisco’s business transformation, focused on delivering more software and subscriptions.
Robbins concluded by affirming a cultural synergy between the two organisations, adding that Splunk CEO, Gary Steele, will join Cisco’s executive leadership team upon the acquisition's completion.
This merger marks a pivotal moment for Cisco, which aims to consolidate its leadership in providing trusted technological solutions, thereby opening new avenues for customer success.