Cisco Systems (CSCO) has finalized its $28 billion U.S. acquisition of Splunk (SPLK) ahead of schedule.
Cisco’s executive team had initially said that they would complete the takeover of Splunk, a
provider of observability software, by the end of September this year.
Cisco said the acquisition will be cash-flow positive and help to boost its gross margins in the fiscal year ending July 2025.
During its most recent earnings call, Cisco’s management said that Splunk would add about $4 billion U.S. in annual recurring revenue to its balance sheet.
The company plans to update its full-year guidance when it reports financial results in May to include Splunk’s contributions.
Cisco had previously said that it was buying Splunk to achieve revenue synergies. Cisco also sees opportunities to expand Splunk’s software products beyond North America.
The purchase of Splunk was an all-cash deal.
Cisco Systems’ stock has declined 3% in the past 12 months and currently trades at $49.27 U.S. per share.
