Cisco gets EU approval for $28 bn deal to acquire Splunk

Cisco Systems has secured antitrust approval from European Union regulators for its $28 billion deal to acquire cybersecurity firm Splunk. The European Commission on Wednesday cleared the deal, saying they did not see any threat to competition from the combination.

The EU approval comes nearly six months after the boards of Cisco and Splunk announced the deal on 21 September 2023.

Cisco's biggest-ever deal was aimed at creating a giant in software and cibersecurity areas in the age of artificial intelligence.

A combination of Cisco and Splunk will create one of the world’s largest software companies in the areas ranging from threat detection and response to threat prediction and prevention.

It will also accelerate Cisco’s strategy to make connectivity more secure and make its business accretive of regular revenue flow.

As per the terms of the deal announce in September 2023, Cisco would pay $157 per share, or $28 billion in total, in cash to acquire Splunk.

Cisco said the deal will not impact its previously announced share buyback programme. On the other hand, the transaction will improve its cash flow and gross profit margin in the first fiscal year itself. 

As per the timeline, the deal is expected to close by the end of the third quarter of 2024, subject to regulatory and shareholder approvals.