Cisco is buying Splunk in a $28 billion deal. Here’s why.

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Cisco Systems Inc. is planning to acquire Splunk in a $28 billion deal — which amounts to $157 a share in cash.

The deal would enhance Cisco’s CSCO software offerings as the company continues to evolve its business, this time through the addition of big-data tools from Splunk SPLK that could help with threat prediction in the security space. Cisco is perhaps the largest security company by revenue.

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