By Ovunc Kutlu
ISTANBUL (AA) - US-based multinational digital communications technology company Cisco announced Thursday it intends to acquire cybersecurity firm Splunk for approximately $28 billion.
Cisco said it aims to buy Splunk for $157 per share in cash, and added that the acquisition would move the companies from "threat detection and response" to "threat prediction and prevention."
"Our combined capabilities will drive the next generation of AI-enabled security and observability," Cisco CEO and Chair Chuck Robbins said in a statement.
Splunk's stock price was up 21% to $144.96 per share on the Nasdaq at 2.06 p.m. EDT, while Cisco's shares were down 4.1% to $53.22.
Gary Steele, president and CEO of Splunk, said the acquisition "will form a global security and observability leader that harnesses the power of data and AI to deliver excellent customer outcomes and transform the industry."
The deal has been unanimously approved by the boards of directors of both companies, and it is expected to close by the end of the third quarter of 2024 after regulatory approval.