<div>
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 <li>
 
 Networking giant Cisco and cybersecurity observability company Splunk announced a deal where Cisco will acquire Splunk for USD 28 billion in the biggest technology M&amp;A of the year. The deal, which is also Cisco's largest acquisition ever, is expected to close in Q3 of next year, subject to regulatory approval.
 
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 <li>
 
 Cisco will pay USD 157 per share in cash under the terms of the deal representing an equity value of USD 28 billion&mdash;a substantial premium over Splunk&rsquo;s last recorded market capitalization of~USD 20 billion prior to the announcement. Cisco expects the acquisition to spur revenue growth and gross margins.
 
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 <li>
 
 In recent years, Cisco has transitioned away from being a pure-play networking vendor to focus on developing secure network and cybersecurity software. Splunk&rsquo;s observability platform will complement Cisco&rsquo;s existing security portfolio, allowing it to offer customers an enhanced, AI-powered observability platform across hybrid and multi-cloud environments, as the company reported.
 
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 <li>
 
 Splunk originally developed data analytics products and has expanded into&nbsp; cybersecurity, offering observability tools to help businesses understand security threats and system issues. The company also recently transitioned from on-premises solutions to a SaaS model. Splunk reported revenue of USD 911 million in Q2 2023 and reports a customer count of 15,000.
 
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 The news saw Cisco shares 4% down at close, while Splunk spiked 21% to USD 144, though still below the offer share price.
 
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 Analyst QuickTake: 
 M&amp;A ticket size in the cybersecurity space had declined significantly during 2023 after the mega-deals of 
 <a href="https://sp-edge.com/updates/8972">
 Google-Mandiant
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 and 
 <a href="https://sp-edge.com/updates/9749">
 KKR-Barracuda
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 the previous year. This acquisition is a little over 5x the size of Google&rsquo;s Mandiant takeover and marks Cisco&rsquo;s fourth security acquisition in 2023; the company previously snapped up threat detection platform 
 <a href="https://sp-edge.com/companies/522304">
 Armorblox
 </a>
 , identity management firm 
 <a href="https://sp-edge.com/companies/1013307">
 Oort
 </a>
 , and cloud security companies 
 <a href="https://sp-edge.com/companies/617833">
 Valtix
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 and 
 <a href="https://sp-edge.com/updates/17434">
 Lightspin
 </a>
 .
 
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 <a href="https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2023/m09/cisco-to-acquire-splunk-to-help-make-organizations-more-secure-and-resilient-in-an-ai-powered-world.html">
 Press release
 </a>
 &nbsp;
 
 
 <a href="https://www.reuters.com/markets/deals/cisco-acquire-splunk-28-billion-2023-09-21/">
 Reuters
 </a>
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 <a href="https://techcrunch.com/2023/09/21/cisco-to-acquire-splunk-in-28b-mega-deal/">
 TechCrunch
 </a>
 
 
 
</div>

Next-gen Cybersecurity

ANALYST_QUICK_TAKE

INCUMBENTS_PRESENT

Cisco has announced plans to acquire cybersecurity observability company Splunk for $28 billion, in what would be the largest technology M&A deal of the year. Cisco's largest ever acquisition is expected to close in Q3 2023, pending regulatory approval. The deal will bolster Cisco's move away from being solely a networking vendor, as it focuses on developing secure network and cybersecurity software. Splunk's observability platform will complement Cisco's existing security portfolio, allowing for an enhanced, AI-powered observability platform across hybrid and multi-cloud environments. Splunk, which recently transitioned to a SaaS model, reported revenue of $911 million in Q2 2023 and has 15,000 customers.

Cisco to acquire Splunk in USD 28 billion all-cash deal

Application security startup, Legit Security, has raised $40 million in a Series B funding round led by CRV. The round, which included participation from Cyberstarts, Bessemer Venture Partners, and TCV, brings the company's total funding to $77 million. The funding will be used to expand the company's sales, marketing, and R&D teams, with plans to increase headcount from 78 to 100 by the end of the year. Legit Security offers a unified application security platform that helps developers secure their applications throughout the development and deployment process, by identifying and remedying vulnerabilities, dependencies, and misconfigurations.

Legit Security raises USD 40 million in Series B funding

Palo Alto Networks is in talks to acquire Israeli secure enterprise browser vendor, Talon Cyber Security, for $600 million. This acquisition would enhance Palo Alto's web security capabilities, allowing them to better detect threats such as phishing, malware, and command and control. Talon provides secure access to applications and data, as well as user activity visibility and security features like authentication and data loss prevention. This would be Palo Alto's first acquisition in nine months, following its acquisition of 13 other companies since 2018. Other cybersecurity firms like CrowdStrike, Tenable, and Check Point have also recently acquired Israeli firms.

Palo Alto reportedly in talks to acquire Talon Cyber Security

DISRUPTOR_PRESENT

Tel Aviv-based software-defined networking startup Cato Networks has raised $238 million in a funding round led by LightSpeed Venture Partners, valuing the company at $3 billion. The round also saw participation from Adams Street Partners, Softbank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8. Cato plans to use the funds to expand its customer base, grow its partner ecosystem, and enhance its engineering and product teams. Ravi Mhatre, founder and director of LightSpeed, will join Cato's board. The company is also reportedly planning to go public within the next year. In 2022, Cato reported over $100 million in annual recurring revenue, with revenue growth of 60% year-on-year and a gross retention rate of over 95%.

Cato Networks raises USD 238 million at USD 3 billion valuation

PROMINENT_CATEGORY

Cybersecurity firm CrowdStrike has agreed to acquire Israeli company Bionic, a specialist in application security posture management (ASPM), for around $350 million. The deal, announced at CrowdStrike's Fal.Con 2023 conference, aims to enhance CrowdStrike's cloud-native application security capabilities. Bionic's ASPM solution will be fully integrated with CrowdStrike's Falcon security platform, adding to its range of services such as cloud workload protection and cloud security posture management. This acquisition will enable CrowdStrike to offer a unified cloud application security platform. Bionic provides an application intelligence platform that tracks cloud applications, monitors changes, and sets app architecture rules.

CrowdStrike acquires Bionic for unified cloud security

CrowdStrike has unveiled a cybersecurity marketplace where users of its platform can access third-party security solutions. Vendors including Armis, Claroty, and Google VirusTotal will offer their products to CrowdStrike's Falcon platform users. The marketplace will also include an incentive program called CrowdCredits, enabling customers to purchase third-party products at discounted prices. Additionally, CrowdStrike launched a partner program called Accelerate, providing educational content, sales tools, and reward programs to resellers, managed service providers, and system integrators.

CrowdStrike launches cybersecurity marketplace

Cybersecurity firm Dragos has raised $74 million in an extension of its Series D funding round led by WestCap. With this extension, Dragos has now raised a total of $440 million in funding, while maintaining its valuation at $1.7 billion. The company plans to use the funds to grow and expand its customer base. Dragos specializes in building cybersecurity solutions for industrial control systems (ICS) and operational technology (OT).

Dragos raises USD 74 million in Series D extension

Lumen Technologies has introduced upgrades to its secure access service edge (SASE) product, aiming to enhance the security and control of cloud applications and infrastructure for its customers. The upgrades consist of security service edge (SSE), which offers secure access to the internet and software-as-a-service (SaaS) applications, enabling secure data sharing, access control, and permission management. Additionally, Lumen has introduced cloud-hosted gateways that facilitate dedicated, centralized, and adaptable security and cloud hosting solutions. These upgrades aim to support enterprises in ensuring the security and management of their cloud applications and data.

Lumen announces security upgrades for SASE

Armis Security has released a new cloud-based platform called Armis Centrix. This platform uses artificial intelligence (AI) to actively address vulnerabilities and identify and prevent threats. It aims to protect an organization's entire attack surface.

Armis launches AI-powered exposure management platform

CrowdStrike, a cybersecurity company, has launched Falcon Complete for Service Providers, a managed detection and response (MDR) platform. This platform is designed for managed security service providers (MSSPs), managed service providers (MSPs), and system integrators (SIs) to offer their organizations the same cybersecurity functionality provided by CrowdStrike. The platform includes features such as 24/7 monitoring, active threat hunting, threat intelligence feeds, and incident response.

All Updates