Cisco reaches deal to buy cybersecurity company Splunk for $28 billion

Cisco, a provider of computer networking hardware and software, has agreed to buy cybersecurity company Splunk for $28 billion, Cisco's largest deal ever. The announcement was made by Cisco and Splunk on September 21.

Under the deal, Cisco will pay $157 a share, up from the $120 Splunk shares were trading at before the announcement and well above the 52-week low of $65.

The two companies expect the deal to close in less than 12 months after receiving antitrust approval.

"Our combined capabilities will enable the next generation of AI-powered surveillance and security," said Cisco CEO Chuck Robbins.

Third Bridge analyst Joseph Brunetto said the deal fits Cisco's merger and acquisition strategy to strengthen its cybersecurity offerings.

He also said that in addition to Splunk, Cisco acquired four companies in 2023 alone, all of which increased Cisco's capabilities in threat detection, identity management, and cloud security.

Cybersecurity has become big business for tech companies, analysts say.

The deal puts Cisco, known primarily for networking equipment and routers, on par with rivals Palo Alto Networks, Check Point, CrowdStrike and Microsoft.

San Francisco-based Splunk is a software platform that uses AI to help users search real-time data to identify malware and cybersecurity threats.

Splunk was founded in 2003 and holds more than 1,100 patents. The Nasdaq-listed company has more than 7,500 employees worldwide.