Cisco Systems Thursday agreed to acquire cybersecurity company Splunk for about $28 billion, in its biggest acquisition ever that would bolster its network security business.
Cisco's offer price of $157 per share in cash represents a premium of about 31% to Splunk's Wednesday close.
"Combined, Cisco and Splunk will become one of the world's largest software companies and will accelerate Cisco's business transformation to more recurring revenue," the companies said in a joint statement.
Cisco shares were down nearly 5% in premarket, while trading in Splunk stock was halted.
The deal, which was unanimously approved by the boards of both Cisco and Splunk, is expected to close by the end of the third quarter of 2024 subject to regulatory approvals.
Tidal Partners, Simpson Thacher & Bartlett and Cravath, Swaine & Moore were advisors to Cisco. Qatalyst Partners, Morgan Stanley & Co, and Skadden, Arps, Slate, Meagher & Flom LLP advised Splunk.
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