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Key Takeaways
- European regulators gave their approval to networking equipment maker Cisco Systems Inc.’s $28 billion acquisition of cybersecurity company Splunk Inc.
- EU officials ruled Wednesday that the Cisco-Splunk transaction wouldn’t raise competition concerns.
- Shares of Splunk soared after the $157-per-share deal was announced in September.
Cisco Systems Inc. (CSCO) received European Union (EU) regulatory approval for the networking equipment maker’s $28 billion purchase of cybersecurity firm Splunk Inc. (SPLK).
The European Commission ruled Wednesday that the deal didn’t violate antitrust laws. It said the acquisition “would not raise competition concerns, given its limited impact on competition in the markets where the companies are active, as there is a sufficient number of alternative players.”
The deal was announced in September, with Cisco agreeing to pay $157 per share in cash for Splunk.
Cisco said Splunk’s security capabilities complement Cisco’s existing portfolio, and the combination “will provide leading security analytics and coverage from devices to applications to clouds.” Cisco Chief Executive Officer (CEO) Chuck Robbins added that their joint capabilities “will drive the next generation of AI-enabled security and observability.”
The companies plan to close the transaction by the end of the third quarter.
Shares of both Cisco Systems and Splunk were down Thursday. Splunk shares skyrocketed following the deal announcement, and have added about three-quarters of their value over the past year.