Splunk (SPLK) on Thursday entered into an agreement to be acquired by Cisco (CSCO) for roughly $157 a share in cash, representing a ~$28B equity value, Stifel tells investors in a research note. The analyst, who made no change to the firm’s Hold rating on Splunk, says the transaction “makes sense” for Cisco, as it attempts to leverage its position in the corporate data center and broaden its high margin, highly recurring, software revenue base and feels the Splunk assets would fit well with the AppDynamics APM business Cisco acquired in 2017.
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