Summary
Cisco Systems, Inc. has announced a significant strategic move with the entry into a definitive agreement to acquire Splunk Inc. for approximately $28 billion. This all-cash transaction will see Splunk become a wholly-owned subsidiary of Cisco. The acquisition aims to enhance Cisco's capabilities and offer a more comprehensive platform to its customers, particularly in areas of digital resilience. The deal has been unanimously approved by Cisco's Board of Directors and is expected to close by the end of the third quarter of calendar year 2024, subject to customary closing conditions including regulatory and stockholder approvals. The transaction involves a cash payment of $157.00 per share for Splunk's outstanding common stock. Cisco will also assume Splunk's outstanding equity awards, with vested options and RSUs being converted into cash payments, while unvested awards will be converted into contingent cash payments that will vest over time based on their original schedules. This acquisition represents a substantial investment by Cisco and signals a significant shift in its strategy to bolster its software and data analytics offerings.
Key Highlights
- 1Cisco to acquire Splunk Inc. in an all-cash transaction valued at approximately $28 billion.
- 2Each share of Splunk common stock will be converted into $157.00 in cash.
- 3The acquisition is expected to enhance Cisco's platform capabilities and digital resilience offerings.
- 4The deal has received unanimous approval from Cisco's Board of Directors.
- 5Closing is anticipated by the end of the third quarter of calendar year 2024, subject to regulatory and shareholder approvals.
- 6A Voting and Support Agreement has been entered into with Hellman & Friedman Advisors LLC, representing approximately 7.6% of Splunk's outstanding stock, agreeing to vote in favor of the merger.
- 7Termination fees are stipulated, with Cisco potentially paying $1.478 billion and Splunk potentially paying $1 billion under specific circumstances.