I think Splunk is a very lucrative acquisition target for several major players including . Build resilience to meet todays unpredictable business challenges. 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. Still, it does not have currently have a . The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. The companys software can be used for managing IT systems, DevOps and security. Daily chart of Splunk stock. SignalFx acquired by Splunk . 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. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Th ecompany serves four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others. Plan your migration with helpful Splunk resources. 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. 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. Cost basis and return based on previous market day close. Build resilience to meet todays unpredictable business challenges. Here are 12 other startups analysts say it could buy to fend off competitors. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. [Related: Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series]. During the years prior going back to 2017, Cisco closed between . Billy Duberstein owns Amazon and Splunk. When submitting your ticket, please include the RayID detailed below for a faster resolution. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Two Days Mattered Most. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. This includes computing devices, control systems, sensors, or anything else connected . 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. Every sell-side analyst on Wall Street has a higher price target than . Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons That certainly indicates the new cloud offerings are very successful with customers. They said I didn't meet their bar for principal but P4-high. 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 . San Jose, Calif.-based Cisco did not respond to CRNs request for comment on the alleged deal by publication time. 2005 - 2023 Splunk Inc. All rights reserved. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. These two acquisitions formed the basis . People close to the company said the talks occurred recently, according to the Journal. Splunk experts provide clear and actionable guidance. Shares of Splunk have fallen 49% since reaching a record in September 2020. To make the world smarter, happier, and richer. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. 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. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. 3. Customer success starts with data success. 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 site owner may have set restrictions that prevent you from accessing the site. Sep 12, 2021. Management expects to be in the black for the balance of the year ahead, so that's good news. acquisition-related adjustments, amortization of intangible assets and . 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. Cisco recently made an offer for IT management and data analytics company Splunk. 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. 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.. 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? The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. Press Release: 6/6/2019 Xerox Acquires Two New Dealers to Expand Presence in the Small-To-Medium Sized Business Market. 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. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. See why organizations around the world trust Splunk. 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. 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. 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. Build, own, manage and support B2B and B2C web and mobile properties. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. Splunks acquisition of Streamlio accelerates Splunk's efforts in real-time stream processing and containerized multi-tenant cloud platform applications expanding Splunk's commitment to and participation in the open source software community. Read more . You do not have access to www.sdxcentral.com. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. Company Location: Mount Laurel, NJ. The reported deal would be the . Invest better with The Motley Fool. You may change your billing preferences at any time in the Customer Center or call However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. We would love to hear from you! The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Invest better with The Motley Fool. It will also affirm Ciscos projected dominance in the sector in the years ahead. Opting out of these cookies may impact some minor site functions. Splunks acquisition of KryptonCloud expands Splunks ability to innovate for IoT use cases with our market-leading machine data platform. 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. Published Dec. 1, 2020 Updated Jan. 4, 2021. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. 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% . 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. 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's 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. 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. SEPTEMBER 2013. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . 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. This one was a gift for the core CRM product. 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. These rankings reflect its credentials and dominance in the space. Cisco did not immediately respond to a request for comment, while a spokesperson for Splunk said the company did not comment on rumors or speculation. Access timely security research and guidance. The offer was made recently and the companies arent currently in active talks, some of the people said. $ + tax 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. Splunk's software has gained popularity as a tool for spotting security threats. Splunk . 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. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Our Standards: The Thomson Reuters Trust Principles. Cisco's offer comes when Splunk is actively hunting for a new CEO following . However, cash on hand and positive free cash flow will fund that new $1 billion share repurchase program, which should help boost earnings per share over time. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. The Leading Resource on Next-Generation IT Infrastructure. The report about said discussions comes not long after Microsoft's mammoth $70 . The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. Discover what Splunk is doing to bridge the data divide. Deliver the innovative and seamless experiences your customers expect. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. "We have been . 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. His clients may own shares of the companies mentioned. Frisco, Texas, United States. 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. 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. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Cisco did not immediately respond to a request for comment. View our Privacy Policy for more information. Read the Wall Street Journal report here. , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. 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. Jun 11, 2018 . It will also affirm Ciscos projected dominance in the sector in the years ahead. Initial filing by director officer or owner of more than ten percent. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. 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. You may cancel your subscription at anytime by calling 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. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. 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. Such a deal would be the largest ever for Cisco . Access timely security research and guidance. As a subscriber, you have 10 gift articles to give each month. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. 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). Sign In. 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. 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.. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. 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 . Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. . 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. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. . Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Heritage Business Systems. 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. Shares of Splunk ( SPLK) - Get Free Report dropped Friday after the software developer disclosed that its chief technology officer, Tim Tully, would leave next month. 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. Splunk Application Performance Monitoring. Anyone can read what you share. a GAAP operating loss of $780 million in 2021. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Statement of changes in beneficial ownership of securities. 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. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . This Is the Largest Merger of the Past 20 Years. The Motley Fool has a disclosure policy. 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. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. You will be notified in advance of any changes in rate or terms. 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. See why organizations around the world trust Splunk. The . The report cited people familiar with the matter and did not say where the potential deal stands. 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. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. Momentum Just Isn't Happening. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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 . 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. 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. She can be reached at gnarcisi@thechannelcompany.com. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. 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. Opinion: Yes, Theres a Housing Crisis. 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. 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. Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . Splunks acquisition of SignalSense enables Splunk to further innovate in our market-leading machine data platform and expands Splunks expertise in machine learning and cloud applications. Splunk jumped up 16 percent post-market on reports of the takeover bid. The offer was . According to Futurum Research, the deal would be. She, however, added a word of caution. Accelerate value with our powerful partner ecosystem. 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. Announcement Date: 6/6/2019. Aug 22, 2019 . 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. 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. 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. Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. Craig is a proud Husky, having graduated from the University of Washington. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. 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. Is this the software value stock for you too? To make the world smarter, happier, and richer. And Kurian an Oracle veteran knows how to . 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. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in . That compares with a $114 share price at the end of trading Friday and $127.45 after hours. Splunk has acquired in 4 different US states, and 3 countries. 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 . Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. Customer Service. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. 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.
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