, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Feb 11 (Reuters) - Network gear maker Cisco Systems Inc (CSCO.O) has made a takeover offer worth more than $20 billion for software maker Splunk Inc (SPLK.O), the Wall Street Journal reported on Friday, citing people familiar with the matter. Access timely security research and guidance. Invest better with The Motley Fool. 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. 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. Cisco and Splunk representatives declined to comment. Craig is a proud Husky, having graduated from the University of Washington. This Splunk shareholder hopes management holds out for a much higher price than was reported. People close to the company said the talks occurred recently, according to the Journal. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. If you feel that youve landed on this page in error, please contact SDxCentral Support. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Every sell-side analyst on Wall Street has a higher price target than Friday's close, with the lowest at $120 per share, and the highest at $225 per share, with the average at $162. Splunk would be a perfect target for its ambitions, and would be Cisco's biggest acquisition ever, about triple (or more) the $7 billion acquisition of Scientific Atlanta back in 2005. Requested URL: www.sdxcentral.com/articles/analysis/who-will-cisco-buy-instead-of-splunk/2022/02/, User-Agent: Mozilla/5.0 (Windows NT 6.1; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/103.0.0.0 Safari/537.36. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. There's also Cisco's original move into observability with its $3.7 billion AppDynamics purchase in 2017, and its $1 billion ThousandEyes buy in 2020. 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. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. You do not have access to www.sdxcentral.com. Deliver the innovative and seamless experiences your customers expect. Announcement Date: 6/6/2019. Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. Give . These are used to let you login and to and ensure site security. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. And over the past few years, Splunk has made a number of tuck-in acquisitions to enter into the hot observability space, which allows corporations to monitor the health of software applications, in addition to IT infrastructure. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. 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. Invest better with The Motley Fool. Cloud ARR was only just over one-third of total ARR in the last quarter, so there will likely be more variability in overall growth and profitability in the next couple of years as more customers make the switch. Precept is a leading multimedia networking software company. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. San Jose, Calif.-based Cisco did not respond to CRNs request for comment on the alleged deal by publication time. Company Location: Mount Laurel, NJ. This Is the Largest Merger of the Past 20 Years. The report cited people familiar with the matter and did not say where the potential deal stands. During the years prior going back to 2017, Cisco closed between . 2005 - 2023 Splunk Inc. All rights reserved. SEC Filings. Splunk experts provide clear and actionable guidance. The Motley Fool has a disclosure policy. Plan your migration with helpful Splunk resources. 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. Sep 12, 2021. Initial filing by director officer or owner of more than ten percent. See why organizations trust Splunk to help keep their digital systems secure and reliable. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. Listen to article. Douglas A. McIntyre. But looking under the hood to ARR and the cloud segment shows a much better growth picture. Splunk is well off its highs and seems undervalued. Ciscos Bold Move to Boost Cybersecurity M&As in 2022, Sapana Maheria, practice head of Thematic Research at GlobalData, believes that if the acquisition goes through, it will. Reporting by Jahnavi Nidumolu and Juby Babu in Bengaluru; Editing by Leslie Adler, Richard Chang and Sandra Maler, Exclusive: Nvidia's plans for sales to Huawei imperiled if U.S. tightens Huawei curbs-draft, Mexico can't match U.S. incentives for proposed Tesla battery plant, minister says, Taiwan's TSMC to recruit 6,000 engineers in 2023, US prepares new rules on investment in technology abroad- WSJ, Exclusive news, data and analytics for financial market professionals. 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 . Ciscos market capitalization is $227 billion. Get this delivered to your inbox, and more info about our products and services. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Read the Wall Street Journal report here. Save Search . You can manage your preferences at any time. Deliver the innovative and seamless experiences your customers expect. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. As a subscriber, you have 10 gift articles to give each month. You may cancel your subscription at anytime by calling 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. Splunk experts provide clear and actionable guidance. Daily chart of Splunk stock. The offer was . VictorOps acquired by Splunk . Momentum Just Isn't Happening. From 2008 to 2010, Mitra . Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . 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. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . Learn More. 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? SDxCentral employs cookies to improve your experience on our site, to analyze traffic and performance, and to serve personalized content and advertising relevant to your professional interests. Our Standards: The Thomson Reuters Trust Principles. Cloudmeter. Splunks stock price fell 20% over a six-month period, and the company reportedOpens a new window a GAAP operating loss of $780 million in 2021. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. Is this the software value stock for you too? You will be charged Statement of changes in beneficial ownership of securities. The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. 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. Learn how we support change for customers and communities. The stock fell 18% on Nov. 15, after the company said CEO Doug Merritt, who had been running the company for six years, would be stepping down immediately. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. 4. Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Splunk Inc. is an American software company based in San Francisco, California, California, that produces software for searching, monitoring, and analyzing machine-generated data via a Web-style interface. Already a member? With a price to sales ratio of 5.6. Access timely security research and guidance. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. This page tracks and reports on important merger news in real-time . Splunk Inc. is an American software company based in San Francisco, California, that produces software for searching, monitoring, and analyzing machine-generated data via a Web-style interface. for both companies. SEPTEMBER 2013. 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. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. As of this writing, shares are down nearly 30% over the last 12-month stretch compared to a 36% run for the S&P 500. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. But there's still lots of work to be done on the cloud business. 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% . Read more . This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. We base our decisions on strategic fit, cultural fit, and equally as important, the financial and evaluation fit, he said when questioned about the potential acquisition. BILL Holdings, Inc., formerly Bill.com Holdings, Inc., is a provider of cloud-based software that digitizes and automates financial operations for small and midsize businesses (SMBs). He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. splunk acquisition rumors 2020; joaquin niemann sponsors. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Network gear maker Cisco Systems Inc has made a takeover offer worth more than $20 billion for software maker Splunk Inc , the Wall Street Journal reported on Friday, citing people familiar with . That certainly indicates the new cloud offerings are very successful with customers. Other tech companies have made that transition in the past, but when they do undertake this transition, they will initially show revenue declines, as larger multi-year deals are replaced by smaller annual but recurring revenue. You may change your billing preferences at any time in the Customer Center or call mutant fly stardew valley; nba waterboy salary per hour near new jersey; wimbledon draw 2022 wiki; london classical concerts 2022; beadnell camping pods Opting out of these cookies may impact some minor site functions. Vlocity gave . 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. (if applicable) for The Wall Street Journal. Sign In. Directly supervise a team of 15 global staff consisting of product, delivery . Heritage Business Systems. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Cisco is reportedly eyeing a Splunk acquisition. 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. 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. The company has been pivoting to a recurring revenue model by shifting from traditional software licenses to cloud-based subscriptions while also steadily growing the customer base. A data platform built for expansive data access, powerful analytics and automation, Cloud-powered insights for petabyte-scale data analytics across the hybrid cloud, Search, analysis and visualization for actionable insights from all of your data, Analytics-driven SIEM to quickly detect and respond to threats, Security orchestration, automation and response to supercharge your SOC, Instant visibility and accurate alerts for improved hybrid cloud performance, Full-fidelity tracing and always-on profiling to enhance app performance, AIOps, incident intelligence and full visibility to ensure service performance. Splunks acquisition of Rigor adds a unique Digital Experience Management (DEM) platform that combines the power of synthetic monitoring with intelligent optimization engine capabilities to enhance Splunk's Observability solutions. Making the world smarter, happier, and richer. According to Newman, Splunk underwent a rough phase in 2021, losing its CEO and witnessing its stock price taking a tumble, but the company still packs a punch and offers a lot of value to potential buyers. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. A statement of beneficial ownership of common stock by certain persons. Two Days Mattered Most. This is because of several transitions the company is undertaking at once. 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. Silver Lake obviously sees upside for Splunk stock and will collect a meager amount of interest along the way for its convertible debt stake in the company. 10 . Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. The Wall Street Journal reported the potential deal earlier on Friday. Concurrent with Silver Lake's investment, Splunk said it will also begin executing a new $1 billion share repurchase plan (which should help offset any future conversion of the debt into new stock). Though it's been beat down in the last year, Splunk operates as the leader in a growing industry and could be a real long-term value for those who can patiently wait out the inevitable bumps in the road. The industry leader for online information for tax, accounting and finance professionals. Plan your migration with helpful Splunk resources. Shares of Splunk have fallen 49% since reaching a record in September 2020. 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. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. And Kurian an Oracle veteran knows how to . The . 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. With the Acquisition Bode Well for Cisco? 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. At just under 10 times trailing-12-month sales, this cloud stock trades for a discount to its higher growth peers like Dynatrace and Datadog. . Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The site owner may have set restrictions that prevent you from accessing the site. Published Dec. 1, 2020 Updated Jan. 4, 2021. See why organizations trust Splunk to help keep their digital systems secure and reliable. The Motley Fool owns shares of and recommends Datadog and Splunk. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. We want to hear from you. Across 2020, Splunk's cloud business represented nearly half of the company's software bookings, enabling organizations to migrate workloads and applications to the cloud, manage colossal spikes in data volume or increase visibility into cloud security risks. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. 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. 2005 - 2023 Splunk Inc. All rights reserved. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. The offer was made recently and the companies arent currently in active talks, some of the people said. Customer success starts with data success. 2023 CNBC LLC. Head over to the Spiceworks Community to find answers. Aruba, a Hewlett Packard Enterprise Company, AMD & Supermicro Performance Intensive Computing, Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series. Is Responsible AI a Technology Issue or a Business Issue. 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. I think Splunk is a very lucrative acquisition target for several major players including . However, an ability to package Splunks leading Security analytics and ITOM solutions with other security offerings, further optimize distribution and pricing, could present very interesting potential M&A synergies for Cisco, Marshall added. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. and is author of the Entrepreneur Journeys book series and Vision India 2020. SignalFx . Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. Splunk has acquired 14 companies, including 8 in the last 5 years.. Splunk's largest acquisition to date was in 2019, when it acquired SignalFx for $1.1B. Finally, Splunk attracted tech-focused private equity firm Silver Lake last summer, which invested $1 billion in Splunk in the form of convertible preferred stock in June 2021. 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. Learn More. Every sell-side analyst on Wall Street has a higher price target than . Jun 11, 2018 . We use cookies to ensure you get the best experience on our website. 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. Do you still have questions? Splunk finished trading on Friday at roughly an $18 billion market cap, and after the after-hours surge, the market cap rose to $20.2 billion. With dominant position in multiple on-premise markets, Ciscos valuation has been held back by more gradual moves toward the cloud and the revenue transition from opex vs. capex focused IT. Alex Murdaughs Trial Lasted Six Weeks. She, however, added a word of caution. Accelerate value with our powerful partner ecosystem. $ + tax We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Sapana Maheria, practice head of Thematic Research at GlobalData, believes that if the acquisition goes through, it will bode wellOpens a new window for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. Splunks acquisition of VictorOps adds collaborative incident management capabilities to Splunks portfolio and creates an analytics-driven Platform of Engagement for DevOps and IT customers to better prevent and resolve incidents. It will also affirm Ciscos projected dominance in the sector in the years ahead. Adding to the complication is that Doug Merritt, Splunk's CEO over the past six years, resigned back in November, which sent the stock another leg down. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. 5. Cisco did not immediately respond to a request for comment. June 5. splunk acquisition rumors 2020 . Cisco CEO Chuck Robbins. Transform your business in the cloud with Splunk. Will Townsend. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. splunk acquisition rumors 2020lakeland correctional facility splunk acquisition rumors 2020. matthew 13:11 studylight; what game do bakers like to play. 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. Cost basis and return based on previous market day close. Splunks acquisition of BugSense enhances our product offerings so that customers can analyze machine data directly from mobile devices and correlate it with other machine-generated data to gain Operational Intelligence. Press Release: 6/6/2019 Xerox Acquires Two New Dealers to Expand Presence in the Small-To-Medium Sized Business Market. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. View our Privacy Policy for more information. To make the world smarter, happier, and richer. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Microsoft CEO Satya Nadella has been going on a major shopping spree. While the offer from Cisco is a nice indicator of Splunk's value, as a Splunk shareholder, I really hope management rejects the offer or demands a much higher price. She can be reached at gnarcisi@thechannelcompany.com. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. Craig Galbraith. Cisco, a leader in unified access security and multifactor authentication thanks to its 2018 $2.35 billion Duo Security buy, could be complimented by Splunks strength around security operations, which the company came by from its own 2018 acquisition of Phantom Cyber, a company specializing in security orchestration, automation and response capabilities. Accelerate value with our powerful partner ecosystem. Here are 12 other startups analysts say it could buy to fend off competitors. A Division of NBCUniversal. Cisco Systems Inc. has made a takeover offer worth more than $20 billion for software maker Splunk Inc., according to people familiar with the matter, in what would be the networking giants biggest acquisition ever. See here for a complete list of exchanges and delays. Splunks acquisition of Cloudmeter adds new capabilities to Splunk products that enable customers to analyze machine data directly from their networks and correlate it with other machine-generated data to gain insights in application and infrastructure management, IT operations, security and business analytics. Investment advisory firm The Motley Fool said the acquisition would make a lot of strategic sense for Cisco, which has aimed to move beyond its historical emphasis on hardware to incorporate more software and services offerings.. Cisco and Splunk have been in the news since last week when The Wall . 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. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. 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. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. Dropbox is a 9.3 billion market cap company. These two acquisitions formed the basis . Cisco recently made an offer for IT management and data analytics company Splunk.