This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. It has remained stable since at around $122 per share. Th ecompany serves four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others. My core competency is finding out people's issues in business. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. 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. 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. 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. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. Precept is a leading multimedia networking software company. 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. 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.. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. Plan your migration with helpful Splunk resources. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. In November last year, San Francisco-based Splunk announced Doug Merritt has stepped down as its chief executive officer (CEO) and that the company's chair, Graham Smith, would be the interim CEO. She can be reached at gnarcisi@thechannelcompany.com. a GAAP operating loss of $780 million in 2021. 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. 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. From 2008 to 2010, Mitra . A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. The people requested anonymity because the information is confidential. 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? 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. Alphabet certainly has the war chest for such deals. Get this delivered to your inbox, and more info about our products and services. 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. TechCrunch. This is because of several transitions the company is undertaking at once. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. Its software helps capture, index and correlate real-time data in a searchable repository, from which it can generate graphs, reports, alerts, dashboards and visualizations. 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. Making the world smarter, happier, and richer. Given that Silver Lake has a seat on the board of directors, it would probably be difficult for it to vote for any acquisition below that $160 price. 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. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. It will also affirm Ciscos projected dominance in the sector in the years ahead. Splunk has acquired in 4 different US states, and 3 countries. This one was a gift for the core CRM product. The two companies have an existing partnership in which Cisco uses Splunks analytics surface insights and inject more automation across its security, networking, wireless, data center and collaboration portfolios. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. If it . and is author of the Entrepreneur Journeys book series and Vision India 2020. View our Privacy Policy for more information. New transactions may be ongoing, let's look at the details. 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. 2005 - 2023 Splunk Inc. All rights reserved. Data is a real-time snapshot *Data is delayed at least 15 minutes. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. 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. 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% . Published Dec. 1, 2020 Updated Jan. 4, 2021. 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. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. The Motley Fool has a disclosure policy. 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. Management expects to be in the black for the balance of the year ahead, so that's good news. 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. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. Company Location: Mount Laurel, NJ. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. 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). A statement of beneficial ownership of common stock by certain persons. Cost basis and return based on previous market day close. Cisco Sues Acacia Over Termination of $2.6B Merger Deal, Cisco Revamps Webex People Insights To Meet Hybrid Workplace Needs, Cisco Breaks Into CXaaS Market With Two Acquisitions, VMware and Cisco Continue To Battle for SD-WAN Supremacy. 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. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. Every sell-side analyst on Wall Street has a higher price target than . Douglas A. McIntyre. Cisco recently made an offer for IT management and data analytics company Splunk. You may cancel your subscription at anytime by calling Accelerate value with our powerful partner ecosystem. 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. Will Townsend. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. Opting out of these cookies may impact some minor site functions. 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. Still, it does not have currently have a . 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.. Deliver the innovative and seamless experiences your customers expect. In a note to investors, Morgan Stanley analyst Meta Marshall said the Splunk acquisition would help Cisco offer stiff competition to industry leaders in the cybersecurity space. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Here are 12 other startups analysts say it could buy to fend off competitors. 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. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. 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. 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. Splunk jumped up 16 percent post-market on reports of the takeover bid. Splunk Acquisition Rumors. The report about said discussions comes not long after Microsoft's mammoth $70 . Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . Cisco CEO Chuck Robbins. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. His clients may own shares of the companies mentioned. 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. Plan your migration with helpful Splunk resources. However my wife wants me to stay at Uber (5a, 450k, 5 yoe) since she sees the high TC and rising stock price soon after COVID . Splunks stock price fell 20% over a six-month period, and the company. This allows me to propose solutions that help my clients. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. We use cookies to ensure you get the best experience on our website. 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. 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. San Jose, Calif.-based Cisco did not respond to CRNs request for comment on the alleged deal by publication time. She, however, added a word of caution. Initial filing by director officer or owner of more than ten percent. This includes computing devices, control systems, sensors, or anything else connected . Save Search . 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. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. Discover what Splunk is doing to bridge the data divide. Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Cisco is using acquisitions to help it grow . A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. The industry leader for online information for tax, accounting and finance professionals. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. 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. His clients may own shares of the companies mentioned. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . Discover what Splunk is doing to bridge the data divide. Customer Service. They said I didn't meet their bar for principal but P4-high. We want to hear from you. But there's still lots of work to be done on the cloud business. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. 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. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. 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. 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. Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. June 5. splunk acquisition rumors 2020 .

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