Splunk Stock Jumps 20% on Cisco’s Acquisition Announcement
<p><a href='https://financialmodelingprep.com/financial-summary/CSCO'>Cisco Systems (NASDAQ:CSCO)</a> and <a href='https://financialmodelingprep.com/financial-summary/SPLK'>Splunk (NASDAQ:SPLK)</a> have reached a definitive agreement, with Cisco planning to purchase Splunk for $157 per share in cash, amounting to a total transaction value of approximately $28 billion. This announcement caused Cisco's stock to drop by nearly 5%, while Splunk shares jumped more than 20% pre-market today.</p>
<p>Once the acquisition is finalized, Gary Steele, the current President and CEO of Splunk, will join Cisco's Executive Leadership Team, reporting to Chair and CEO Chuck Robbins. The transaction is anticipated to close by the end of the third quarter of the 2024 calendar year. Cisco expects the acquisition to have a positive impact on cash flow and gross margin in the first fiscal year after completion, with non-GAAP earnings per share (EPS) becoming accretive in the second year.</p>

NASDAQ:CSCO, NASDAQ:SPLK