Networking company Cisco Systems will acquire a cybersecurity company called Splunk for $28 billion. The price is 31% higher than Splunk’s last stock price. The two companies have already discussed the issue in the past, but nothing happened.

Cisco headquartersPhoto: Ken Walter, Dreamstime.com

Splunk provides enterprise cybersecurity solutions so customers can identify and resolve technical issues as quickly as possible. Cisco is famous for telecommunications and networking equipment, but is also strong in software.

Cisco Systems has a market cap of $225 billion, while Splunk has a market cap of $20 billion.

Cisco Systems has 85,000 employees and had $57 billion in revenue last year. Splunk was founded in 2003, had $3.65 billion in revenue last year, and has 8,000 employees.

Sources: CNBC, Bloomberg.

Photo source: Dreamstime.com