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Cisco’s $28 Billion Splunk Acquisition Receives Unconditional EU Approval

 |  March 14, 2024

Cisco Systems has secured unconditional approval from European Union antitrust regulators for its acquisition of cybersecurity firm Splunk. The $28 billion deal, announced last year, marks Cisco’s largest-ever acquisition and is poised to reshape its software business landscape.

The European Commission, after thorough scrutiny, declared on Wednesday that it did not foresee any competition issues arising from the merger. This move underscores the Commission’s confidence in the deal’s compliance with EU competition regulations.

According to a statement from the European Commission, the merger is not expected to significantly impact competition in the markets where both companies operate, as there remains a substantial number of alternative players.

Moreover, the EU competition enforcer highlighted that the merged entity would not possess the capability to exclude competitors, assuaging concerns about potential monopolistic behavior. Reuters had previously reported on March 5 that the EU competition watchdog was likely to clear the deal without imposing any conditions.

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

This approval comes at a pivotal moment for Cisco Systems as it strives to fortify its software business in the face of evolving market dynamics. With the rapid advancement of artificial intelligence and the resurgence of cybersecurity concerns, the acquisition of Splunk presents a strategic opportunity for Cisco to bolster its offerings and strengthen its position in the industry.

The Splunk acquisition not only aligns with Cisco’s strategic objectives but also serves as a proactive measure to mitigate the effects of a post-pandemic slowdown in demand. By diversifying its portfolio and expanding into high-growth sectors such as cybersecurity and AI-driven analytics, Cisco aims to navigate through economic uncertainties and sustain its growth trajectory.

The approval from EU regulators signifies a crucial milestone in the journey towards finalizing the acquisition. With the regulatory hurdles cleared, Cisco Systems is now one step closer to integrating Splunk into its operations, unlocking synergies, and delivering enhanced value to its customers worldwide.

Source: Reuters