Data is an omnipresent force in the contemporary world. A complex one, yet omnipresent. That’s a fact. Organizations worldwide are tethered to data as their lifeblood, relying on it as “fuel” for their day-to-day activities and to steer their strategic choices.

That said, the complexity has only gotten worse recently because of the likes of generative AI technology coupled with the widening threat landscape and the widespread use of multiple cloud environments. Organizations are tasked with overcoming that complexity, but they cannot do it alone. They need a way to better manage, protect and unlock data's true value and stay digitally resilient.

Cisco, a U.S. technology company that specializes in networking hardware, telecoms equipment and other IT services and products, hopes to help organizations address the complexity surrounding data. To do that, Cisco (News - Alert) recently announced that it reached a definitive agreement to acquire Splunk.

Splunk plays a pivotal role in fortifying the digital realm, instilling trust in organizations to preemptively avert security breaches, address infrastructure and application challenges proactively to prevent them from escalating into significant disruptions and speed up digital transformation.

The collaboration between Cisco and Splunk (News - Alert), each bringing their unique strengths in AI, security and observability to the table, promises to unlock the full potential of data, enhancing the security and digital resilience of organizations, regardless of their size. Splunk's expertise in security complements Cisco's existing offerings, resulting in a comprehensive security analytics solution that spans from devices to applications to cloud environments.

Together, their capabilities will provide comprehensive observability across hybrid and multi-cloud setups. Both companies are well-equipped to guide customers in harnessing the power of AI responsibly. The result? Customers will experience smooth and secure application performance that drives their digital ventures.

“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."

This union between Cisco and Splunk also signifies a commitment to further investments in innovative solutions, accelerated progress and expanded global reach, catering to the diverse needs of customers across the spectrum. Both companies share a dedication to purpose-driven values, fostering inclusive cultures and boasting exceptionally talented teams, ensuring that this acquisition strengthens their positions as "Great Places to Work" and premier destinations for software talent.

"Uniting with Cisco represents the next phase of Splunk's growth journey, accelerating our mission to help organizations worldwide become more resilient, while delivering immediate and compelling value to our shareholders," said Gary Steele, president and CEO of Splunk.

Under the agreement, Cisco plans to acquire Splunk for $157 per share in cash, amounting to about $28 billion in equity value. The acquisition has received unanimous approval from both companies' boards of directors and is anticipated to conclude by the end of the third quarter in 2024, pending regulatory and shareholder approvals. It will not affect Cisco's previously announced share buyback and dividend programs.

Upon close of the acquisition, Steele will join Cisco's Executive Leadership Team, reporting to Robbins.