However, it appears Splunk has a fairly deep bench, especially with two big new hires from Amazon, so it should be able to find a suitable replacement either internally or externally. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. Mergers and Acquisitions - 24/7 Wall St. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. We would love to hear from you! Splunk is currently unprofitable, and the stock has been unable to bounce back from last year's challenges with this interest rate cloud hanging over it. Asset management M&A: Who's buying and selling in 2021 - sjo3ekt.js It's not that I am clearvoyant, it is just my nature to keep asking questions, truly listen to the answers and connect the dots until I have a clear understanding. Broadcom Corp. Layoffs - TheLayoff.com According to Futurum Research, the deal would be a good fitOpens a new window for both companies. Cisco recently made an offer for IT management and data analytics company Splunk. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. Splunks acquisition of SignalFx adds real-time monitoring and metrics for cloud infrastructure, microservices and applications, enhancing Splunks position as a leader in observability and APM. The Silicon Valley-based tech investor recently plopped $1 billion down on Splunk, a significant cash infusion given Splunk's current enterprise value sits at $23 billion. Splunks stock was up 10.47 percent to $126.50 in after-hours trading Friday after the news was published. These two acquisitions formed the basis . A spoksperson for Splunk cited its policy not to comment on rumors or speculation. Vlocity gave . A Division of NBCUniversal. So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. Not surprisingly, when asked about the rumored acquisition during the earnings call, Robbins was coy, refusing to comment on the rumors and providing no hints in either his comments or . Splunks acquisition of Plumbr enhances the auto-instrumentation, real user monitoring and deep application performance monitoring capabilities of Splunks Observability solutions. Splunk shares rose as much as 14% in extended trading on Friday after the Wall Street Journal reported that Cisco made an offer to buy the data analytics software company for over $20 billion. Apr 16, 2021 1:02 PM EDT. A deal may not happen at all, but if talks resume, Cisco could pay more than $20 billion for Splunk, one of the people said. Cisco is using acquisitions to help it grow . The Omnition purchase follows Splunk's announcement last month that it planned to acquire cloud monitoring company SingalFx for $1.05 billion -- its largest acquisition ever. Splunks acquisition of Phantom Cyber adds security orchestration, automation and response to Splunks portfolio and extends automation capabilities to Splunk's customers in security and IT. [Related: Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series]. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2021 If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. In that light, it's no wonder Cisco may see an opportunity to swoop in at this time of transition and uncertainty to take Splunk for itself. If it . Even though its cloud revenues zoomed 77% in the year, its overall revenue was down 5% year-over-year, and its operating cash flow was negative $191 million with free cash flow of negative $228 million. The acquisition by Cisco could provide much-needed breathing space for the company to invest heavily in cloud, IT security, and data observability platforms and digital transformation initiatives in the year ahead. Directly supervise a team of 15 global staff consisting of product, delivery . Dropbox (DBX) Acquisition Rumors | High Flying Investing Then there's also the balance sheet. The report cited people familiar with the matter and did not say where the potential deal stands. The stock's still trading below its 50-, 100-, and 200-day moving averages after a Christmas period in which you'd have expected the stock to rebound amid a 2.8% . The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Splunk buys SaaS startup Omnition | ZDNET Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. Read more . Salesforce buys Slack for $27.7 billion in cloud company's - CNBC Here are 12 other startups analysts say it could buy to fend off competitors. Cisco CEO On Reported Splunk Deal: 'We Are Constantly - CRN The industry leader for online information for tax, accounting and finance professionals. See why organizations around the world trust Splunk. According to Futurum Research, the deal would be. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, Joe Biden Has Advocated Cutting Social Security Benefits 3 Times, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. And Kurian an Oracle veteran knows how to . The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. It has more recently sought to shift toward cloud computing and catch up with its competitors, like Datadog, that started their business in the cloud. Rigor's monitoring and optimization solutions complement the other Splunk offerings. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. Cisco makes $20 billion-plus takeover offer for Splunk - CNN Build resilience to meet todays unpredictable business challenges. If you feel that youve landed on this page in error, please contact SDxCentral Support. Company:Splunk - HandWiki Anyone can read what you share. Management expects to be in the black for the balance of the year ahead, so that's good news. Got a confidential news tip? The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Discover what Splunk is doing to bridge the data divide. For every deal we do, we probably look at 10-15 companies. Right now, Splunk stock is giving traders a potential breakout from its current trading range, as well as a monthly-up rotation over the January high of $124.72. IDC forecasts data creation and replication will grow at a 23% annualized growth rate from 2020 to 2025, and that acts as a powerful tailwind for the industry. The site owner may have set restrictions that prevent you from accessing the site. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. Splunks acquisition of Caspida adds Behavioral Analytics to Splunks security portfolio and expands our ability to address a broader set of security challenges faced by customers including advanced threats, insider threats and fraud. and is author of the Entrepreneur Journeys book series and Vision India 2020. You will be charged Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. Is this the software value stock for you too? This Is the Largest Merger of the Past 20 Years. Initial filing by director officer or owner of more than ten percent. Save Search . Microsoft said last month that it was planning to acquire the video game company Activision Blizzard for nearly $70 billion, and Salesforce acquired the workplace software company Slack last year for $27.7 billion. We've been tracking company news on mergers and acquisitions since 1999. Cisco is reportedly eyeing a Splunk acquisition. . Splunk jumped up 16 percent post-market on reports of the takeover bid. Gert Van Damme - Lead Business Consultant NetSuite ERP - LinkedIn Opinion: Yes, Theres a Housing Crisis. Cisco Systems, the technology conglomerate, has held discussions with the software company Splunk about buying it, although no deal is currently on the table, two people familiar with the matter told The New York Times on Friday. That would equate to a market cap of just over $25 billion. Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. The reported deal would be the . Watch: Retired Army Col. Paris Davis Awarded Medal of Honor, Why Barnes & Noble Is Copying Local Bookstores It Once Threatened, What Floridas Dying Oranges Tell Us About How Commodity Markets Work. The Leading Resource on Next-Generation IT Infrastructure. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. Chuck Robbins, CEO, Cisco Systems, speaking at the World Economic Forum, Davos, Switzerland, January 21, 2020. Splunk - Blind I think Splunk is a very lucrative acquisition target for several major players including . This page tracks and reports on important merger news in real-time . Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Who Will Cisco Buy Instead of Splunk? - SDxCentral Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. Salesforce to Acquire Slack for $27.7 Billion (Published 2020) Never Miss a Revenue Moment With Intent and Pre-Intent Data, 10 Actionable Data Trends in 2023 To Nail Your Analytics, How Technology Is Digitally Transforming Ad Operations, Three Ways Enterprise Architecture is Driving Digital Transformation, Seed-stage Companies Can Create FOMO to Gain an Edge in Fundraising, Correcting the Course of Failed Climate-conscious Planning with AI, Cloud Cost Optimization as a Lever Against Inflationary Pressure, How Simulations Can Help Us Solve the Climate Crisis in a Way That Benefits Everyone. During the years prior going back to 2017, Cisco closed between . Read focused primers on disruptive technology topics. Statement of changes in beneficial ownership of securities. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The purchase marks one of the largest ever for the software industry. View our Privacy Policy for more information. First of all, Splunk is far off from its all-time highs, down about 48% from its 2020 highs at the end of trading on Friday. Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. Invest better with The Motley Fool. Press Release: 6/6/2019 Xerox Acquires Two New Dealers to Expand Presence in the Small-To-Medium Sized Business Market. Our servers do not recognize your request. Splunk . Microsoft is on a buying binge. Here's what it could buy next - CNN It has remained stable since at around $122 per share. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. We are delighted that you'd like to resume your subscription. Acquisitions - Acquisition Summary - Cisco Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. In GlobalDatas thematic scorecard for application software, Splunk ranked fifth out of 45 companies, and the company also boasts a score of 5 out of 5 in the cybersecurity theme. See here for a complete list of exchanges and delays. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . We want to hear from you. Jun 11, 2018 . At this price, it appears Cisco would be getting a steal, unless the price winds up being a lot higher than the $20 billion reported. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. As I see it, Splunks presence in the security and observability space would be an incredibly attractive addition to Ciscos existing solutions, while adding a substantial cloud and recurring revenue-based business to the companys top line.. Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth, said Chuck Robbins, chair and CEO of Cisco. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. Total revenue in Q1 2022 was up just 16% from a year ago to $502 million, a decent rally after overall revenue fell 5% last year. Discover what Splunk is doing to bridge the data divide. At the peak of its after-hours move, Splunk was valued at more than $20 billion, up from $18.2 billion at the close of trading. At the time of the announced deal, that was some 30% above where Splunk stock was trading, although shares jumped nearly 10% higher on the news. Senior Assistant Editor, Spiceworks Ziff Davis, Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . *Average returns of all recommendations since inception. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. It appears Splunk is back in growth mode, and recent acquisitions and the launch of its new Observability Suite and Security Cloud offerings could help sustain this return to growth. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. SAN FRANCISCO and .conf20 - October 20, 2020- Splunk Inc. (NASDAQ: SPLK), provider of the Data-to-Everything Platform, today announced that it has completed the acquisition of Plumbr, an application performance monitoring (APM) company offering auto-instrumentation, Real User . for both companies. 3. Even though its cloud revenues zoomed 77% in the year, its overall revenue was down 5% year-over-year, and its operating cash flow was negative $191 million with free cash flow of negative $228 million. The acquisition by Cisco could provide much-needed breathing space for the company to invest heavily in cloud, IT security, and data observability platforms and digital transformation initiatives in the year ahead. The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. Statement of changes in beneficial ownership of securities. List of Splunk's 16 Acquisitions, including TwinWave And TruSTAR Douglas A. McIntyre. Accelerate value with our powerful partner ecosystem. This is because of several transitions the company is undertaking at once. Cisco was built on its leading position in enterprise hardware, but has made a big strategic effort to buy its way into the more stable software space. Mobile World Congress Barcelona 2023 Delivers The 5Goods Deliver the innovative and seamless experiences your customers expect. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. Cisco Has Discussed Deal for Software Company Splunk. Network gear maker Cisco Systems has made a takeover offer worth more than $20 billion for software maker Splunk, The Wall Street Journal reported on Friday, citing people familiar with the matter. These are used to let you login and to and ensure site security. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. 4. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. The . As I see it, Splunks presence in the security and observability space would be an incredibly attractive addition to Ciscos existing solutions, while adding a substantial cloud and recurring revenue-based business to the companys top line, said Daniel Newman, Futurums principal analyst. The notes have an annual interest rate of just 0.75% per year payable to Silver Lake, and they mature in July 2026 if they haven't been repurchased or redeemed by then. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. IT systems management, cybersecurity, and observability company Splunk (SPLK -1.40%) surged more than 11% late Friday, after The Wall Street Journal reported tech giant Cisco Systems (CSCO 1.54%) had made an offer to buy the company for more than $20 billion. It's obviously a nice thing when someone is interested in your stock, but as a recent Splunk shareholder, I'm hoping the company doesn't sell, if the offer is in fact close to $20 billion. Build resilience to meet todays unpredictable business challenges. Cisco Systems has put down a takeover offer for Splunk worth more than $20 billion, according to a Friday evening report published by The Wall Street Journal. "We have been . Company Location: Mount Laurel, NJ. Craig Galbraith. Splunk Stock Lacks Momentum amid Insider Selling | Nasdaq Sign up to Stock Advisor for $79 for 1 year, Save 15% on orders of $100+ with Kohl's coupon, How Chilis Is Prepping for Tough Times, Starting With the Fries, Electric Vehicles Are Shattering the Barrier to Adoption that Could Matter Most, The Surprising Ways Walking Delivers a High-Intensity Workout, The Tax Play That Saves Some Couples Big Bucks. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. Cisco Systems (NASDAQ: CSCO) offered to acquire Splunk (NASDAQ: SPLK) for more than $20 billion, the Wall Street Journal reported citing people familiar with the matter. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. But there's still lots of work to be done on the cloud business. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, Joe Biden Has Advocated Cutting Social Security Benefits 3 Times, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Cloud annual recurring revenue (ARR) has been off to the races and was up 83% year over year in Q1 fiscal 2022 to $833 million, but these changes have throttled overall revenue expansion. Splunk (SPLK) Q4 2023 Earnings Call Transcript, The Nasdaq Could Soar in 2023 -- 5 Stocks Down 57% to 91% to Buy Before It Does, Why Splunk Shares Gained 10.8% Last Month, 1 Monster Growth Stock to Buy Hand Over Fist, According to Wall Street, 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Want $1 Million in Retirement? Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. Splunk makes acquisitions that are aligned with our business strategy and enable us to expand our product portfolio, address a broader set of customer challenges, and enhance our market leadership position as the platform for turning data into action. These rankings reflect its credentials and dominance in the space. While Meraki, Sourcefire, OpenDNS, Acacia have been well-executed acquisitions, AppDynamics has stood out as a pure-play software acquisition that has not performed well (with AppDynamics revenue down Y/Y in some recent quarters).
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