Cisco to Acquire Splunk: $28 Billion Deal to Accelerate AI-Enabled Security and Observability
Cisco has agreed to acquire data observability and security company Splunk in a $28 billion deal to develop AI-enabled security solutions.
Cisco has announced its plans to acquire data observability and security company Splunk in a deal worth $28 billion. This is Cisco's largest deal to date and is aimed at advancing the development of AI-enabled security and observability solutions. The acquisition will allow Cisco to expand its cybersecurity offerings and reduce its reliance on networking equipment manufacturing. The deal is expected to close by the end of the third quarter of 2024, pending regulatory approval and shareholder consent. Splunk CEO Gary Steele will join Cisco's executive leadership team as part of the agreement. The merger is expected to drive revenue growth for Cisco and provide new opportunities in the changing technology landscape. Both companies have expressed excitement about the potential for collaboration and the ability to deliver innovative solutions to customers. However, industry experts have raised concerns about the integration of technologies and the companies' capabilities in AI and SIEM cloud adoption. The SIEM market still faces challenges, including data ingestion and the detection of unknown threats. Regardless of the acquisition, there is a need for vendors to address these challenges and provide reliable solutions.