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Cisco Set to Receive EU Antitrust Approval for $28 Billion Splunk Acquisition

 |  March 5, 2024

Cisco Systems, the renowned technology conglomerate, is on the cusp of securing unconditional approval from the European Union’s antitrust authorities for its monumental $28 billion acquisition of cybersecurity firm Splunk. Two individuals familiar with the matter revealed this development on Tuesday, shedding light on the latest progress in the high-stakes deal.

The acquisition, unveiled last year, marks Cisco’s largest-ever endeavor and is poised to fortify its software portfolio significantly. This move comes at a strategic juncture as Cisco aims to capitalize on the burgeoning artificial intelligence sector while navigating through a post-pandemic era characterized by a sluggish demand landscape.

According to insiders, the European Commission is slated to greenlight the acquisition once its preliminary review concludes on March 13. Notably, the commission’s investigation unearthed no evidence of anti-competitive concerns, clearing the path for Cisco to proceed with its transformative acquisition strategy.

Despite inquiries, both the EU competition regulator and the involved parties, Cisco and Splunk, refrained from issuing official statements at the time of reporting.

Read more: Former Cisco Executive Gil Ohana Joins Davis Polk’s Antitrust Practice

In a recent update, Splunk, headquartered in San Francisco, California, expressed optimism regarding the impending closure of the deal. The company anticipates the acquisition to be finalized towards the latter part of the current quarter or early in the second quarter of 2024, underscoring the confidence in the regulatory approval process, reported Reuters.

The impending acquisition underscores Cisco’s proactive approach to stay ahead in the ever-evolving technology landscape. By integrating Splunk’s cybersecurity expertise into its ecosystem, Cisco is poised to enhance its offerings and solidify its position as a key player in the software domain.

As the tech industry witnesses a surge in demand for cybersecurity solutions and advanced software capabilities, Cisco’s strategic maneuver is poised to unlock new avenues for growth and innovation, positioning the company for sustained success in the competitive market landscape.

Source: Reuters