Cisco allegedly bid nearly 18 billion euros ($20 billion) to acquire data software specialist Splunk. According to the Wall Street Journal and Bloomberg, talks of a possible acquisition have stopped at this time.
Cisco’s alleged 18 billion euro bid is higher than Spunk’s estimated market value of 16 billion euros (18 billion dollars). Insider sources told the Wall Street Journal that, although an offer was made, talks have presently stopped. Bloomberg confirmed the latter in an article that has since been taken offline.
Rescue for Splunk
For Splunk, an acquisition may come as a solution to the impasse in which the data software specialist has found itself for some time.
In November 2021, Doug Merritt stepped down as CEO to be replaced by Chairman Graham Smith. The software company’s board has undergone many changes in recent years. In addition, the company’s operating costs are on the rise, impacting profits significantly.
Splunk’s share price rose by 16 percent following the rumours of an acquisition by Cisco.
Expansion of enterprise software portfolio
Reportedly, Cisco wants to use Splunk to expand its portfolio of business enterprise software. If the deal goes through, it will be the largest acquisition that Cisco has ever made.