Cisco beefs up cybersecurity play with $28 bn Splunk deal

Cisco Systems on 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.