Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. While the revenue has been growing consistently, it has not grown at especially remarkable rates. Douglas A. McIntyre. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Still, it does not have currently have a . Shares of Splunk have fallen 49% since reaching a record in September 2020. Such a deal would be the largest ever for Cisco . Alex Murdaugh Receives Life Sentence: What Happens Now? Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. Anyone can read what you share. 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. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. splunk acquisition rumors 2020; joaquin niemann sponsors. Two Days Mattered Most. New transactions may be ongoing, let's look at the details. Splunk's acquisition of Rocanas technology and intellectual property plus a number of Rocanas technical employees advances Splunk's market-leading machine data platform and machine learning capabilities. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. As for Cisco, Newman said the company made significant investments in cloud, software, and other higher-margin offerings, and the Splunk deal could help it achieve further growth in these bitterly-contested verticals. The report about said discussions comes not long after Microsoft's mammoth $70 . 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. Our servers do not recognize your request. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. He said mergers such as Invesco's 2019 acquisition of OppenheimerFunds, Janus's 2017 deal with Henderson, and even 2020 Franklin Templeton's merger with Legg . Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. Is this the software value stock for you too? Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. 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. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. 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. Customer Service. 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. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. 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. *Average returns of all recommendations since inception. Accelerate value with our powerful partner ecosystem. Splunk CEO on the data firm's new initiative focused on government cybersecurity, Jim Cramer's Investing Club meeting Friday: Costco, Eli Lilly, Apple, Goldman Sachs upgrades this internet of things stock which it sees surging 60%, Top 10 things the Club is watching in the stock market Friday. According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . 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. 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 . Splunk's acquisition of TwinWave extends our security leadership and adds capabilities to empower the security analyst with cloud-native, automated threat analysis for phishing and malware. However, now it's coming through the other end of it: Even though Splunk is now past the bottom of the transition, revenue growth according to generally accepted accounting principles (GAAP) is still lagging behind the real recurring top line the company is taking in. 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. 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. We want to hear from you. That bidder was Sycamore Partners, a . Build resilience to meet todays unpredictable business challenges. It will also affirm Ciscos projected dominance in the sector in the years ahead. Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. Learn More. 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. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. A challenge for Cisco in its transformation is the heft of the current $50 billion revenue base focused primarily on networking equipment, making it mathematically difficult to find the subscription revenues to transform the business, she said. Transform your business in the cloud with Splunk. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. No deal is currently on the table, according to two people familiar with the talks, but Cisco could pay more than $20 billion, one said. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. 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. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. Cisco is using acquisitions to help it grow . Daily chart of Splunk stock. The Company's most targeted sectors include internet software and services (50%) and software (29%).. Join Mergr and gain access to Splunk's M&A summary, the M&A summaries . See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . *Average returns of all recommendations since inception. My core competency is finding out people's issues in business. These are the highest quality stocks in the S&P 500 that could win in this volatile market, This growth ETF is leaving one of its top competitors in the dust. Invest better with The Motley Fool. 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. Frisco, Texas, United States. It has remained stable since at around $122 per share. Cisco and Splunk have been in the news since last week when The Wall . About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. The Leading Resource on Next-Generation IT Infrastructure. Performance & Tracking Cookies - We use our own and 3rd party analytics and targeting cookies to collect and process certain analytics data, including to compile statistics and analytics about your use of and interaction with the Site along with other Site traffic, usage, and trend data which is then used to target relevant content and ads on the Site. Read focused primers on disruptive technology topics. VictorOps acquired by Splunk . maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Splunk has been in the process of shifting toward providing cloud services to customers, and said in December that almost 37% of revenue in the latest quarter was tied to cloud usage. 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. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. Splunk, like Cisco, has been shifting its business from selling on-premises software with traditional license pricing to cloud-based software sold on a subscription basis in a move that has been transformative for the company and its channel partners. Splunk is well off its highs and seems undervalued. Customer Service. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. 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. Then there's also the balance sheet. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. During the years prior going back to 2017, Cisco closed between . No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. We are delighted that you'd like to resume your subscription. 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. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. 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. 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. Listen to article. 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. Momentum Just Isn't Happening. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. L Brands' plan was to spin its Bath & Body Works brand off into a stand-alone company and sell its lagging Victoria's Secret/Pink brands to the highest bidder. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. 2005 - 2023 Splunk Inc. All rights reserved. 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. 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. Billy Duberstein owns Amazon and Splunk. Save Search . I think Splunk is a very lucrative acquisition target for several major players including . That would equate to a market cap of just over $25 billion. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. Splunk said it does not comment on rumors or speculation. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). The Motley Fool has a disclosure policy. 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. 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. 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. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . You may change your billing preferences at any time in the Customer Center or call At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. Craig is a proud Husky, having graduated from the University of Washington. 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 . New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. 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). Read focused primers on disruptive technology topics. 2005 - 2023 Splunk Inc. All rights reserved. (if applicable) for The Wall Street Journal. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. Silver Lake thus isn't the only investor in line to convert debt into new stock, and this isn't the cleanest balance sheet in the software industry at the moment. Splunk, whose stock price has fallen by 30 percent since its chief executive, Doug Merritt, unexpectedly stepped down in November, has a market capitalization of around $18 billion. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Discover what Splunk is doing to bridge the data divide. 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. Learn More. Already a member? Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. The Motley Fool owns shares of and recommends Datadog and Splunk. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. A Division of NBCUniversal. In spite of these strong qualities, Splunk traded at just 7.5 times trailing sales at the end of trading Friday -- a relative bargain in the high-growth software sector. The people requested anonymity because the information is confidential. 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 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 manage your preferences at any time. This Is the Largest Merger of the Past 20 Years. 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. [Related: Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series]. The data log management and monitoring software leader has also trailed behind its smaller higher-growth and cloud-native peers as it adapts its business to more modern customer needs. Accelerate value with our powerful partner ecosystem. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems.
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