Cisco beefs up cybersecurity play with $28 billion Splunk deal

The logo of networking gear maker Cisco Systems Inc is seen during GSMA's 2022 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2022. REUTERS/Nacho Doce

(Reuters) -Cisco Systems has agreed buy cybersecurity firm Splunk for about $28 billion in its biggest-ever deal to beef up its software business and capitalize on the rising use of artificial intelligence, the companies said on Thursday.

Splunk shares jumped 23% in premarket trading, but were still about $10 below Cisco's offer price of $157 per share in cash. Cisco's stock was down nearly 5%.