![]() On July 29, 2023, Cisco had $1,733 million in short-term debt as well as $6,658 million in long-term debt. During that time, Cisco will generate probably $10 billion in free cash flow and while it will need about $3.2 billion in dividend payments and might spend about $3 billion on share repurchase (this number is in line with past quarters), about $4 billion in additional cash would remain.Īnd as long as we are talking about the balance sheet, it is worth pointing out that Cisco has a solid balance sheet (and the balance sheet will remain solid after the acquisition). And it will take about two quarters before the deal is finalized. On the one hand, Splunk has currently about $1,524 million in cash and cash equivalents as well as $926 million in short-term investments, which Cisco will acquire as well (but it seems rather unlikely to use that cash to pay for Splunk). So far, I could not find any information about Cisco taking on additional debt. I don’t know where the missing $2 billion will come from. This leads to $26,146 million in very liquid assets, which is almost enough for the acquisition. ![]() On July 29, 2023, Cisco had $10,123 million in cash and cash equivalents as well as $16,023 million in short-term investments. Cisco will pay in cash and when looking at the company’s balance sheet, it almost has enough cash to pay for Splunk. The deal is expected to close in the third quarter of calendar year 2024.Ĭisco Splunk Acquisition Presentation Impact on Balance SheetĬisco will acquire Splunk for $157 per share resulting in a total deal value around $28 billion. Splunk is based in San Francisco, is generating almost $4 billion in annual revenue and has about 8,000 employees. The company offers security platforms – including Splunk Security (helping organizations to fortify the digital resilience by mitigating cyber risks) and Splunk Observability (providing visibility across the full stack of infrastructure, applications, and the digital customer experience). The company is using machine data to identify data patterns and providing metrics and diagnosing problems. ![]() Splunk AcquisitionĬisco is intending to acquire the cybersecurity company Splunk, which is producing software for searching, monitoring, and analyzing machine-generated data. Additionally, we will answer the question if Cisco remains a buy after the Splunk acquisition. We will look at the deal, its financing, the balance sheet and provide a short overview of Splunk.Īnd as my last article about Cisco was written in January 2023, it is time for an update anyway and we will also look at the results for fiscal 2023 and update the intrinsic value calculation. ( NASDAQ: CSCO) announced the intention to acquire Splunk ( NASDAQ: SPLK) and we will take a closer look at the $28 billion acquisition.
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