Cisco and Splunk announced a definitive agreement under which Cisco intends to acquire Splunk for $157 per share in cash, representing approximately $28 billion in equity value.

Upon close of the acquisition, Splunk President and CEO Gary Steele will join Cisco's Executive Leadership Team reporting to Chair and CEO Chuck Robbins.

Chuck Robbins, chair and CEO of Cisco, said, "From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient."

"Uniting with Cisco represents the next phase of Splunk's growth journey, accelerating our mission to help organizations worldwide become more resilient, while delivering immediate and compelling value to our shareholders," said Gary Steele, president and CEO of Splunk.

"Together, we 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. We're thrilled to join forces with a long-time and trusted partner that shares our passion for innovation and world-class customer experience, and we expect our community of Splunk employees will benefit from even greater opportunities as we bring together two respected and purpose-driven organizations," Steele added.

Splunk's security capabilities complement Cisco's existing portfolio, and together, will provide security analytics and coverage from devices to applications to clouds.

Cisco and Splunk's complementary capabilities will provide observability across hybrid and multi-cloud environments enabling the company's customers to deliver smooth application experiences that power their digital businesses. Cisco and Splunk are well positioned to help customers responsibly harness the power of AI given their substantial scale, visibility into data, and foundation of trust.

The union of these two organizations will allow for greater investments in new solutions, accelerated innovation, and increased global scale to support the needs of customers of all sizes.

Cisco's acquisition of Splunk will also build upon both companies' reputations for being purpose-driven with similar values, strong cultures, and incredibly talented teams. The acquisition will unite two "Great Places to Work" with a shared passion for innovation and inclusion and will remain a great place to work and the premier place for software talent.