Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Cisco Systems (NASDAQ:CSCO) has announced an acquisition of Splunk (NASDAQ:SPLK) that is expected to be completed in Q3 of 2024.
Under the terms of the agreement, Cisco Systems has agreed to give Splunk $28.00 billion in cash in exchange for SPLK stock.
About The Companies Involved Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls.
Splunk is a cloud-first software company that focuses on analyzing machine data. The company is a major player in two markets: security and full-stack monitoring & analysis.
How An Acquisition Works An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.
An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.
Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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