Cisco Systems has struck a $28 billion deal to buy analytics and security-software company Splunk the networking-equipment giant looks to tap further into the rise of artificial intelligence.
The deal will create one of the world’s largest software companies, Cisco said, and will immediately boost its cash flow in the first year after closing, which is expected by the end of September 2024. The combination will expand Cisco’s software portfolio and produce more recurring revenue, it said, along with enabling Cisco to provide customers with AI and other tools to analyze their data and detect security threats.
Splunk, founded in 2003, makes software used by companies’ information-technology and security operations to monitor and analyze data. Cisco sells network equipment such as routers, switches and provides security services as well as software products.
Read the full story on The Wall Street Journal here.