Cisco announced plans to purchase Splunk for $28 billion improve digital resiliency for the enterprise market.

Splunk helps companies mitigate security issues, using AI to identify risks and threats, giving organizations the ability to address them become they become full-blown security incidents.

Cisco sees an opportunity to integrate Splunk’s services to help usher in a new era of AI-driven cybersecurity.

“We’re excited to bring Cisco and Splunk together. Our combined capabilities will drive the next generation of AI-enabled security and observability,” said Chuck Robbins, chair and CEO of Cisco. “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.

The deal, worth $28 billion, breaks down to $157 per share in cash and is expected to close by the end of Q3 2024.