Why Splunk Stock Popped Today

Shares of Splunk (NASDAQ: SPLK) were up 21.3% as of 1:10 p.m. ET Thursday after the data analytics and observability specialist agreed to be acquired by Cisco Systems (NASDAQ: CSCO).

More specifically, on Thursday morning Splunk announced it has entered into a definitive agreement under which Cisco will acquire the company for $157 per share in cash -- a roughly 31% premium from Wednesday's closing price. The deal places an equity value on Splunk of approximately $28 billion.

"We're excited to bring Cisco and Splunk together," said Cisco CEO Chuck Robbins in a statement. "Our combined capabilities will drive the next generation of AI-enabled security and observability."

Source Fool.com