Cisco is buying the cybersecurity firm Splunk in a USD 28 billion deal as it bolsters its defences against potential security threats that may be heightened by the widening use of artificial intelligence.

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The Silicon Valley tech giant will pay USD 157 per Splunk Inc. Share.

“Our combined capabilities will drive the next generation of AI-enabled security and observability,” Cisco Chair and CEO Chuck Robbins said in a prepared statement. “From threat detection and response to threat prediction and prevention, we will help make organisations of all sizes more secure and resilient.”

The boards of both companies approved the acquisition, which is expected to close by the end of 2024's third quarter. It still needs approval from Splunk shareholders.

Shares of Cisco Systems Inc. Fell more than 4 per cent before the market open on Thursday, while Splunk's stock surged nearly 22 per cent.

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