(Reuters) – Cisco Systems has announced its plan to acquire cybersecurity company Splunk for approximately $28 billion, marking its largest acquisition to date and strengthening its network security business.
The deal is for $157 per share in cash, offering a 31% premium to Splunk’s closing price on Wednesday.
“The combination of Cisco and Splunk will result in one of the world’s largest software companies and will accelerate Cisco’s shift towards more recurring revenue,” said the companies in a joint statement.
Cisco’s shares fell nearly 5% in premarket trading, while trading in Splunk stock was halted.
The acquisition has received unanimous approval from the boards of both Cisco and Splunk and is expected to be completed by the end of the third quarter of 2024, pending regulatory approvals.
Cisco received advice from Tidal Partners, Simpson Thacher & Bartlett, and Cravath, Swaine & Moore, while Splunk was advised by Qatalyst Partners, Morgan Stanley & Co, and Skadden, Arps, Slate, Meagher & Flom LLP.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Anil D’Silva)
Credit: The Star : Tech Feed
