Should Splunk walk away, it will pay a $1 billion breakup fee to Cisco. If Cisco backs out of the deal or if it's blocked by regulators, Cisco will pay Splunk a termination fee of $1.48 billion, according to a regulatory filing. Prior to that, he was CEO of Proofpoint, a cybersecurity firm that was acquired by private equity firm Thoma Bravo in 2021 for $12.3 billion. Steele joined Splunk a little over a year ago. Splunk CEO Gary Steele, who will join Cisco's executive team after the deal closes, said on the call with analysts that, "We still have many large customers who are very dependent upon the capabilities that we allow for in a customer managed environment." In recent years, Splunk turned away from an on-premises "customer-managed" approach to focus on a cloud-oriented offering. Oppenheimer's Ittai Kidron noted on the call that Splunk's pivot to the cloud has been "underwhelming." "Together, we will become one of the largest software companies globally," Robbins said in a conference call with analysts.įollowing the announcement, some analysts raised concerns about potential product overlap, regulatory scrutiny and the price Cisco paid. The company will finance the deal with a combination of cash and debt, he said. Robbins told CNBC's "Squawk on the Street" on Thursday that he expects organizational synergies between Cisco and Splunk to become clear within 12 to 18 months. At the time, Cisco's market cap was just over $100 billion. Prior to Splunk, Cisco's biggest deal ever was the $6.9 billion purchase of cable set-top box maker Scientific Atlanta in 2006. The purchase price is equivalent to about 13% of Cisco's market cap, a big number for a company that has historically avoided blockbuster deals. The deal is expected to close in the third quarter of 2024, and Cisco says it should improve gross margins in the first year and non-GAAP earnings in year two. "From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient." ![]() "Our combined capabilities will drive the next generation of AI-enabled security and observability," Robbins said, in a statement. Cisco has long been the world's largest maker of computer networking equipment and has been bolstering its cybersecurity business to meet customer demands and fuel growth.Ĭisco CEO Chuck Robbins emphasized the importance of artificial intelligence and using the power of AI that comes with Splunk's technology to protect networks. Splunk's technology helps businesses monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster. ![]() Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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