Cisco Acquisition Target Splunk to Cut 500 Jobs in the US - Here's How Much It Will Cost Them
Portfolio Pulse from Anusuya Lahiri
Splunk Inc plans to cut 7% of its global workforce, mainly in the U.S., under a new restructuring plan. The company expects to incur approximately $42 million in charges related to the restructuring. The plan is expected to be completed by April 30, 2024. Cisco Systems, Inc agreed to acquire Splunk for $157 per share in cash, a deal expected to close by the end of the third quarter 2024. Splunk's shares traded lower by 0.27% at $146.77 on the last check Wednesday.
November 01, 2023 | 4:10 pm
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NEUTRAL IMPACT
Cisco Systems has agreed to acquire Splunk for $157 per share in cash, with the transaction expected to close by the end of the third quarter 2024.
While the acquisition could potentially strengthen Cisco's portfolio, the impact on its stock price in the short term is uncertain as the transaction is still subject to regulatory approval and is not expected to close until 2024.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Splunk is cutting 7% of its workforce, incurring $42 million in charges. The company's shares traded lower by 0.27%.
The news of job cuts and restructuring costs could negatively impact investor sentiment, leading to a decrease in the company's stock price. The stock has already traded lower following the announcement.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100