Cisco Splashes $28 Billion on Splunk: What It Means for AI, Security, and Observability

- Cisco announced it is acquiring Splunk for $28 billion, the largest enterprise software deal so far this year.

- Splunk is an overview platform that helps customers with security, log analysis, and system troubleshooting.

- Cisco is paying $157 per share, which is a huge premium to Splunk's recent stock price, which suggests there may have been some competition for the deal.

- Cisco CEO Chuck Robbins said the deal will advance the next generation of AI-enabled security and observability capabilities, while Splunk CEO Gary Steele said it will accelerate Splunk's growth journey and mission.

- Ray Wang, an analyst at Constellation Research, said the deal has a natural synergy because it combines Cisco's network telemetry and Splunk's observability platform to give customers a better view of data and security threats.

- Subject to regulatory approval, the deal is expected to close in the third quarter of 2023.

- The deal is a rare example of a mega-acquisition in a quiet year for M&A, as many companies have been cautious due to the pandemic and economic uncertainty.

- The deal will also give Cisco a boost in its AI assessment and capabilities, as Splunk is investing heavily in AI and machine learning to enhance its platform and products.

- The deal will also expand Cisco's customer base and market reach, as Splunk has more than 20,000 customers across various industries and sectors.

- The deal will also create opportunities for cross-selling and upselling, as both companies have complementary offerings in security, cloud, data center, IoT and edge computing.

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