Nomios is pleased to share the acquisition agreement between our esteemed partners, Cisco and Splunk. Cisco, a leading networking company, is set to acquire Splunk, a cybersecurity and observability leader. This strategic move signifies a shift towards proactive threat prediction and prevention, departing from traditional threat detection and response.
Upon completion, Gary Steele, President and CEO of Splunk, will join Cisco's Executive Leadership Team, reporting to Chair and CEO Chuck Robbins. This partnership aims to bolster organisational security and resilience.
Positive cash flow and margin improvements projected
Cisco's acquisition of Splunk is projected to yield positive cash flow and gross margin improvements within the first fiscal year post-acquisition, with non-GAAP EPS growth anticipated in year two. This aligns with Cisco's strategy of moving towards a recurring revenue model.
Leading the way in the security sector
The combined expertise of Cisco and Splunk in AI, security, and observability establishes them as leaders in the security and observability sector. Splunk's security capabilities will complement Cisco's portfolio, providing comprehensive security analytics across devices, applications, and cloud environments. Their collaborative capabilities will offer observability across hybrid and multi-cloud environments, benefiting digital businesses.
This partnership enables increased investments in innovation, accelerated innovation cycles, and global scalability, catering to organisations of all sizes.
A harmonious blend of innovation and purpose
Cisco and Splunk, both recognised as "Great Places to Work," share values, strong cultures, and talented teams, making this acquisition a harmonious blend of innovation and purpose. They will continue to be premier destinations for software talent.
The transaction has received unanimous approval from the boards of both companies. It is expected to conclude by the end of the third quarter of 2024, pending regulatory approval and customary closing conditions, including approval by Splunk shareholders.