Cisco falls after $28 bln deal for Splunk
21/09/2023 13:06
** Shares of networking equipment maker Cisco Systems
CSCO.O fall 4% to $53.28 premarket following deal to buy data
analytics software firm Splunk SPLK.O for about $28 bln
** SPLK halted for trading
** Offers $157/share in cash, a premium of about 31% to
Splunk's closing price on Wednesday
** Transaction expected to close by the end of Q3 2024
** Deal expected to be cash flow positive and add to gross
margin in first fiscal year post close, and non-GAAP EPS
accretive in year two
** Ten of 26 brokerages rate Cisco "buy" or higher, 15
"hold" and one "sell"; their median PT is $58.50
** Up to Wednesday's close, CSCO had risen 16.5% YTD
(Reporting by Khushi Singh)
((Khushi.Singh@thomsonreuters.com;))