Cisco, a global leader in technology and networking solutions, has announced a definitive agreement to acquire Splunk for approximately $28 billion in equity value.

Post the completion of the acquisition, Splunk president and CEO Gary Steele will join Cisco’s executive leadership team reporting to Chair and CEO Chuck Robbins.

The acquisition has been unanimously approved by the boards of directors of both Cisco and Splunk. It is expected to close by the end of the third quarter of the calendar year 2024, subject to regulatory approval and other customary closing conditions including approval by Splunk shareholders.

“Our combined capabilities will drive the next generation of AI-enabled security and observability,” said Chuck Robbins, chair and CEO of Cisco. “From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient.”

“Together, we will form a global security and observability leader that harnesses the power of data and AI to deliver excellent customer outcomes and transform the industry. We’re thrilled to join forces with a long-time and trusted partner that shares our passion for innovation and world-class customer experience, and we expect our community of Splunk employees will benefit from even greater opportunities as we bring together two respected and purpose-driven organizations,” said Gary Steele, added.

The union of these two organizations is expected to allow for greater investments in new solutions, accelerated innovation, and increased global scale to support the needs of customers of all sizes.