Cisco Buys Splunk for $28 Billion in Massive AI-Powered Data Bet

Cisco agreed to buy Splunk in a deal valued at about $28 billion, representing its biggest acquisition yet and a massive push into software and artificial intelligence-powered data analysis. From a report: Cisco will pay $157 a share in cash, the companies said in a statement Thursday, or a 31% premium to Splunk's previous closing price on Wednesday. Cisco has been expanding its software and services business in an attempt to rely less on its hallmark networking hardware. The Silicon Valley giant has traditionally generated the bulk of its revenue from equipment that forms the backbone of computer networks, but that's been changing. Last month Cisco outlined the headway it's making in artificial intelligence and security technology. The deal is also arguably just as much a bet on artificial intelligence as it is on the business of software and data security. Earlier this year, Splunk announced a new line of AI offerings that it said would, among other things, allow companies to detect and respond to anomalies in their data faster. The merger offers the companies' AI products "substantial scale" and more visibility into data, they said in Thursday's statement.

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