Cisco Systems Inc (NASDAQ:CSCO) on Thursday announced agreements to acquire Splunk Inc (NASDAQ:SPLK) for $157 per share, a total equity value of about $28 billion.
The acquisition price reflects a premium of 31.3% on Splunk’s price of $119.59 as of Wednesday's market close.
Benzinga reported earlier that the acquisition is predicted to be cash flow positive and accrue gross margin in the initial fiscal year post-close and be non-GAAP EPS accretive in the following year. The acquisition will expedite Cisco’s revenue growth and margin expansion, and Splunk CEO Gary Steele will integrate into Cisco's Executive Leadership Team, directly reporting to ...