- By Vaamanaa Sethi
- Thu, 21 Sep 2023 06:30 PM (IST)
- Source:JND
Cisco Systems announced on Thursday that it has acquired cybersecurity company Splunk for about $28 billion, which is reportedly the biggest acquisition deal in its history that would bolster its network security business.
As per reports, Cisco's offer price of $157 per share in cash represents a premium of about 31% to Splunk's Wednesday close.
"Combined, Cisco and Splunk will become one of the world's largest software companies and will accelerate Cisco's business transformation to more recurring revenue," the companies said in a joint statement.
The deal was unanimously approved by the board of both Cisco and Splunk and is expected to close by the end of the third quarter of 2024 subject to regulatory approvals. Cisco's stock experienced a nearly 5% decline during premarket trading, while trading in Splunk stock was temporarily halted.
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Tidal Partners, Simpson Thacher & Bartlett and Cravath, Swaine & Moore were advisors to Cisco. Qatalyst Partners, Morgan Stanley & Co, and Skadden, Arps, Slate, Meagher & Flom LLP advised Splunk.
Cisco reported third quarter revenue of $14.6 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.2 billion or $0.78 per share, and non-GAAP net income of $4.1 billion or $1.00 per share.