In a move set to reshape the cybersecurity landscape, networking giant Cisco has completed its acquisition of Splunk, a leading provider of security and observability solutions, for $28 billion. The deal, first announced in September 2023, unites two industry leaders with complementary strengths in AI, security, and data analysis.

Cisco says the combined force will revolutionize how organizations leverage data to secure their digital footprint. “We will bring the full power of the network together with Splunk’s market-leading security and observability solutions,” said Chuck Robbins, Chair and CEO of Cisco. “This will deliver a real-time unified view of the entire digital landscape, allowing teams to proactively defend critical infrastructure, prevent outages, and refine the network experience.”

Splunk’s President and CEO, Gary Steele, joins Cisco’s executive team as Executive Vice President and General Manager of Splunk, reporting directly to Robbins. “Uniting Splunk and Cisco will bring tremendous value to our joint customers worldwide,” said Steele. “Cisco and Splunk are two leaders with complementary capabilities, and this collaboration presents exciting opportunities for the future.”

The acquisition is expected to be financially beneficial for Cisco, with the company predicting cash flow positivity and non-GAAP gross margin accretion in fiscal year 2025, and non-GAAP EPS accretion in fiscal year 2026. Splunk’s common stock ceased trading on the NASDAQ exchange on the day of the acquisition’s completion.

This landmark deal has the potential to significantly impact the cybersecurity industry. By combining Cisco’s networking expertise with Splunk’s security and observability prowess, the new entity is poised to offer customers a comprehensive and powerful solution for protecting their digital assets in the age of ever-evolving cyber threats.