RESEARCH TRIANGLE PARK – Cisco delivered big news about a whopper of a deal early Thursday, disclosing plans to spend $28 billion to acquire cybersecurity firm Splunk.
It’s the largest acquisition to date by Cisco (Nasdaq: CSCO), which operates a huge corporate campus in RTP. (Cisco spent nearly $7 billion in 2005 for Scientific Atlanta.)
“This is truly a historic day for Cisco. We have incredible momentum, and this will be strengthened further with the addition of Splunk to our team,” Cisco Chair and CEO Chuck Robbins wrote in a blog post. “Together, we will bring trusted innovation leadership, an outstanding go-to-market engine, and a world-class culture that will help our customers move with greater speed to rapidly unlock new opportunities ahead. I’m incredibly excited to see all that we can achieve together.”
In the blog, Robbins (a UNC Chapel Hill graduate, by the way), explains why Cisco made the deal for Splunk (Nasdaq: SPLK). By the way, Splunk CEO Gary Steele is set to join Cisco’s Executive Leadership Team and when the deal closes report to Robbins.
Robbins on the deal
“This will bring together two powerful innovation engines and create one of the largest software companies globally. This combination will accelerate Cisco’s strategy to securely connect everything to make anything possible,” Robbins wrote.
“Cisco and Splunk are two leaders with complementary capabilities across AI, security, and observability, and together we will help make organizations of all sizes more resilient and secure in an AI-powered world.
“The IT landscape has drastically changed as organizations around the world have digitized their businesses, and it will continue to evolve at an even more rapid pace with the acceleration and adoption of AI. While these new technologies create vast opportunities, they also add even greater complexity — unlike anything we’ve ever seen.
“Data is one of the most powerful resources in business, with every organization relying on it to help stay securely connected, run their business, and make mission-critical decisions. However, customers need a better way to manage, protect, and unlock data’s true value while staying resilient and secure in a world that is constantly changing.
“The Cisco Security Cloud has visibility into vast amounts of security data — network data, identities, emails, web traffic, endpoints, and processes. With Splunk, Cisco is adding one of the world’s best data platforms to Cisco’s robust security portfolio. The combination of Splunk and Cisco will help businesses move from threat detection and response to threat prediction and prevention, making organizations of all sizes more secure and resilient.
“On top of the data and security challenges, Generative AI is rapidly transforming industries and creating new opportunities. Together, Cisco and Splunk see a broad range of data across applications, security, and the network. With the scale we bring and a deep foundation of trust, we believe we’re very well positioned to provide customers visibility to their data and enable them to take advantage of the many opportunities with AI.
“Together, Cisco and Splunk will address these challenges and create new opportunities for organizations around the world by offering best-in-class technologies to protect, connect, and advance their missions. We will strive to help our customers make sense of what’s happening in their infrastructure, make decisions and act on insights quickly, and help secure their data and their entire enterprise, all in one place.
“Over the past few years, Cisco has been transforming our business to deliver more software and subscriptions, while still delivering best-in-class, high-performance hardware. With Splunk joining Cisco, we will accelerate our business transformation, which will allow us to put innovation in the hands of our customers faster, provide greater predictability and visibility in our business, and help drive growth and long-term shareholder value.
“I’m also excited about the strong cultural fit between our two organizations with both Cisco and Splunk having similar values, strong cultures, and incredibly talented teams. Both Cisco and Splunk are regularly recognized as ‘Great Places to Work,’ with Cisco achieving the top spot in the United States for three years in a row. I am so proud of what we’ve built as Cisco and believe that, together, we can make an even bigger impact as we set out to improve people’s lives and communities across the globe in powering a more inclusive future for all. I’m also thrilled that upon close of the acquisition, Splunk’s CEO, Gary Steele, will join Cisco’s Executive Leadership Team, reporting to me.
“This is truly a historic day for Cisco. We have incredible momentum, and this will be strengthened further with the addition of Splunk to our team. Together, we will bring trusted innovation leadership, an outstanding go-to-market engine, and a world-class culture that will help our customers move with greater speed to rapidly unlock new opportunities ahead. I’m incredibly excited to see all that we can achieve together.”