In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. 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.. 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. [Related: Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series]. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. 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. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. 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. VictorOps . The Motley Fool owns shares of and recommends Datadog and Splunk. . To make the world smarter, happier, and richer. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . 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. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Is Responsible AI a Technology Issue or a Business Issue. According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. To make the world smarter, happier, and richer. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. 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. SignalFx . Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. 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 . List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. 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. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). Access timely security research and guidance. (if applicable) for The Wall Street Journal. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. 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 . 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. Splunk Application Performance Monitoring. Read focused primers on disruptive technology topics. Learn how we support change for customers and communities. 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. A statement of beneficial ownership of common stock by certain persons. Splunk said it does not comment on rumors or speculation. Customer success starts with data success. 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. $ + tax 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. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. Cisco has offered to buy business analytics provider Splunk, private equity-backed private security giant Allied Universal could be taken public in a $20 billion, three-way SPAC merger, and Apollo . 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. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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). Cost basis and return based on previous market day close. Splunk experts provide clear and actionable guidance. In that light, it's no wonder Cisco may see an opportunity to swoop in at this time of transition and uncertainty to take Splunk for itself. Get this delivered to your inbox, and more info about our products and services. 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. Plan your migration with helpful Splunk resources. a GAAP operating loss of $780 million in 2021. Customer Service. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. Cisco and Splunk representatives declined to comment. Build resilience to meet todays unpredictable business challenges. 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. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. Statement of changes in beneficial ownership of securities. We would love to hear from you! Customer success starts with data success. Splunk . Read more . See here for a complete list of exchanges and delays. The top source for up-to-the-minute company Merger 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. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. Discover what Splunk is doing to bridge the data divide. I think Splunk could be cheap right now after its underwhelming performance in the last year, though, and private equity firm Silver Lake seems to think so too. 10 . 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 . The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org Is this the software value stock for you too? Even though its cloud revenues zoomed 77% in the year, its overall revenue was down 5% year-over-year, and its operating cash flow was negative $191 million with free cash flow of negative $228 million. The acquisition by Cisco could provide much-needed breathing space for the company to invest heavily in cloud, IT security, and data observability platforms and digital transformation initiatives in the year ahead. The initial conversion price is $160 per share. 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. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. 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. 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 will be charged Cisco is using acquisitions to help it grow . 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? Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. It has remained stable since at around $122 per share. 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. His clients may own shares of the companies mentioned. 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. 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. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. (1 minute) 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 . Listen to article. Directly supervise a team of 15 global staff consisting of product, delivery . 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 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. Splunk makes acquisitions that are aligned with our business strategy and enable us to expand our product portfolio, address a broader set of customer challenges, and enhance our market leadership position as the platform for turning data into action. *Average returns of all recommendations since inception. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. 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). For every deal we do, we probably look at 10-15 companies. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. In 2020, asset management went on a shopping spree. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. See why organizations trust Splunk to help keep their digital systems secure and reliable. With a price to sales ratio of 5.6. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. Microsoft CEO Satya Nadella has been going on a major shopping spree. 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. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Plan your migration with helpful Splunk resources. Read focused primers on disruptive technology topics. Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. 2023 CNBC LLC. 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. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. Daily chart of Splunk stock. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. We are constantly evaluating potential opportunities. Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. 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. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. This one was a gift for the core CRM product. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. All quotes delayed a minimum of 15 minutes. Sign up for free newsletters and get more CNBC delivered to your inbox. Cisco is reportedly eyeing a Splunk acquisition. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. In fact, many large companies use multiple vendors for internal data analytics. eric kocher generation kill; blue shield of northeastern ny claims address; alycia debnam carey siblings; cauliflower jalapeno nobu; Opting out of these cookies may impact some minor site functions. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, Joe Biden Has Advocated Cutting Social Security Benefits 3 Times, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. The Motley Fool has a disclosure policy. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. Making the world smarter, happier, and richer. 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. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. 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 resilience to meet todays unpredictable business challenges. Splunk jumped up 16 percent post-market on reports of the takeover bid. It will also affirm Ciscos projected dominance in the sector in the years ahead. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. SEPTEMBER 2013. These two acquisitions formed the basis . Cisco recently made an offer for IT management and data analytics company Splunk. Alex Murdaugh Receives Life Sentence: What Happens Now? Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. Never Miss a Revenue Moment With Intent and Pre-Intent Data, 10 Actionable Data Trends in 2023 To Nail Your Analytics, How Technology Is Digitally Transforming Ad Operations, Three Ways Enterprise Architecture is Driving Digital Transformation, Seed-stage Companies Can Create FOMO to Gain an Edge in Fundraising, Correcting the Course of Failed Climate-conscious Planning with AI, Cloud Cost Optimization as a Lever Against Inflationary Pressure, How Simulations Can Help Us Solve the Climate Crisis in a Way That Benefits Everyone. The purchase marks one of the largest ever for the software industry. 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. But there's still lots of work to be done on the cloud business. 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. Discover what Splunk is doing to bridge the data divide. With the Acquisition Bode Well for Cisco? Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. People close to the company said the talks occurred recently, according to the Journal. 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. Access timely security research and guidance. for both companies. 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. 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. New transactions may be ongoing, let's look at the details. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. 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.. 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. 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. "We have been . a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. 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. Will Townsend. 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 . 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. Our servers do not recognize your request. Invest better with The Motley Fool. 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. 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. splunk acquisition rumors 2020lakeland correctional facility splunk acquisition rumors 2020. matthew 13:11 studylight; what game do bakers like to play. Initial filing by director officer or owner of more than ten percent. Dropbox is a 9.3 billion market cap company. This cloud transformation also caused Splunk to dip into negative free cash flow territory, and it only just returned to positive free cash flow in Q1 2022 (to $66.7 million). So what should new GCP leader Thomas Kurian do? 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. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Cloudmeter. 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. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. 2005 - 2023 Splunk Inc. All rights reserved. Two Days Mattered Most. June 5. splunk acquisition rumors 2020 . Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. They said I didn't meet their bar for principal but P4-high. Got a confidential news tip? Shares of Splunk have fallen 49% since reaching a record in September 2020. 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. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. When submitting your ticket, please include the RayID detailed below for a faster resolution. But the advent of the cloud has shifted these needs away from legacy IT systems, and Splunk wasn't exactly ready for the change. Opinion: Yes, Theres a Housing Crisis. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. 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. Chuck Robbins, CEO, Cisco Systems, speaking at the World Economic Forum, Davos, Switzerland, January 21, 2020. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. Announcement Date: 6/6/2019. Splunk's software has gained popularity as a tool for spotting security threats. Splunks acquisition of Plumbr enhances the auto-instrumentation, real user monitoring and deep application performance monitoring capabilities of Splunks Observability solutions.
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