Cisco acquires Splunk for $28 billion

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Cisco, a prominent player in the networking industry, has recently completed a significant acquisition by purchasing cybersecurity solutions provider Splunk for a substantial sum of $28 billion. This announcement was made public through the company’s PR division, shedding light on the transformative impact this move will have on their threat detection capabilities and revenue growth.

Splunk is renowned for its ability to help organizations achieve digital resilience, and Cisco intends to harness the technology acquired from this acquisition to bolster the security of its users’ digital environments.

In today’s rapidly evolving digital landscape, businesses are increasingly embracing digitalization. To effectively navigate the overwhelming influx of data and safeguard data integrity against cyber threats, companies are actively seeking solutions that streamline data management and protection.

According to Cisco’s annual report for 2022, the big data market is projected to reach a staggering $400 billion by 2030, largely fueled by advancements in generative AI. To address the diverse needs of various markets while prioritizing security, Cisco has strategically chosen to simplify the complexities associated with AI security challenges through its acquisition of technology from Splunk.

It’s worth noting that Cisco had initially considered acquiring SentinelOne, but ultimately decided to withdraw from the deal due to concerns related to the calculation of annualized recurring revenue. This raised doubts within the networking giant about the software technology’s potential revenue generation post-acquisition.

The decision to pull out had a significant impact on the shares associated with SentinelOne, resulting in a sharp 35% decline from their value at the end of the previous week. This abrupt withdrawal occurred because the current market capitalization of SentinelOne was locked at $4.9 billion, which fell considerably short of Cisco’s estimated value of $8 billion for the deal.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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