Cisco (CSCO) to acquire Splunk (SPLK); proposed deal is for USD 157/shr in cash, representing c. USD 28bln in equity value
- SPLK President and CEO Gary Steele will join CSCO's exec leadership team reporting to Chair and CEO Chuck Robbins.
- Deal is expected to be cash flow positive and gross margin accretive in the first fiscal year post-close.
- Acquisition has been unanimously approved by boards of directors of both sides.
- Deal will accelerate CSCO's revenue growth and GM expansion.
- Deal expected to be non-GAAP EPS accretive in year 2.
Reaction details (12:51)
- SPLK shares were halted, news pending.
- CSCO shares -4.6%
Analysis details (12:47)
- Note, in February 2022 Cisco made a USD 20bln plus takeover offer for Splunk; bid was made but the two were not in active talks.
21 Sep 2023 - 12:45- EquitiesImportant- Source: Newswires
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