We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Heritage Business Systems. 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. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. 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. The Leading Resource on Next-Generation IT Infrastructure. The Motley Fool owns shares of and recommends Datadog and Splunk. Making the world smarter, happier, and richer. It's had to adapt its suite of services and the way it bills customers for this new cloud era. 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% . 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. These rankings reflect its credentials and dominance in the space. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. But looking under the hood to ARR and the cloud segment shows a much better growth picture. 2005 - 2023 Splunk Inc. All rights reserved. It will also affirm Ciscos projected dominance in the sector in the years ahead. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. Alphabet certainly has the war chest for such deals. This includes computing devices, control systems, sensors, or anything else connected . The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. New transactions may be ongoing, let's look at the details. 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. Cisco is reportedly eyeing a Splunk acquisition. You may cancel your subscription at anytime by calling That would equate to a market cap of just over $25 billion. . Splunk experts provide clear and actionable guidance. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. 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 is well off its highs and seems undervalued. Read focused primers on disruptive technology topics. SEC Filings. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. We are constantly evaluating potential opportunities. 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). He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. a GAAP operating loss of $780 million in 2021. The positive reaction from investors has some logic to it. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. The reported deal would be the . 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 Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. 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. Still, it does not have currently have a . 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. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. 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. 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 . Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. 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. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. That certainly indicates the new cloud offerings are very successful with customers. 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. 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. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. $ + tax maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org 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. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. This page tracks and reports on important merger news in real-time . Momentum Just Isn't Happening. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. This Is the Largest Merger of the Past 20 Years. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. 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. 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 . The Wall Street Journal reported the potential deal earlier on Friday. Build resilience to meet todays unpredictable business challenges. Chuck Robbins, CEO, Cisco Systems, speaking at the World Economic Forum, Davos, Switzerland, January 21, 2020. splunk acquisition rumors 2020; joaquin niemann sponsors. 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. Splunk's software has gained popularity as a tool for spotting security threats. 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. Learn how we support change for customers and communities. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. Plan your migration with helpful Splunk resources. 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. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. The initial conversion price is $160 per share. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. Aug 22, 2019 . 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. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. Precept is a leading multimedia networking software company. 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. The industry leader for online information for tax, accounting and finance professionals. Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company announcedOpens a new window a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. 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. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. Oct 20, 2020 . 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. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. According to Futurum Research, the deal would be. That bidder was Sycamore Partners, a . 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The offer was . Splunk shares rose as much as 14% in extended trading on Friday after the Wall Street Journal reported that Cisco made an offer to buy the data analytics software company for over $20 billion. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Learn how we support change for customers and communities. Customer success starts with data success. Craig Galbraith. Customer Service. 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 . At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. You may change your billing preferences at any time in the Customer Center or call According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. You will be notified in advance of any changes in rate or terms. 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 . Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. As a subscriber, you have 10 gift articles to give each month. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. Read more . 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. Splunk Application Performance Monitoring. 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. and is author of the Entrepreneur Journeys book series and Vision India 2020. Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Discover what Splunk is doing to bridge the data divide. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. 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. 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. 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. Cisco and Splunk have been in the news since last week when The Wall . Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. 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. 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 is known as a serial acquirer, effectively using acquisitions as a complement to research and development. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. So what should new GCP leader Thomas Kurian do? Doug Merritt, Splunk's CEO for the past six years, stepped down in November. While the revenue has been growing consistently, it has not grown at especially remarkable rates. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. splunk acquisition rumors 2020lakeland correctional facility splunk acquisition rumors 2020. matthew 13:11 studylight; what game do bakers like to play. 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 . Anyone can read what you share. Learn More. The positive reaction from investors has some logic to it. Deliver the innovative and seamless experiences your customers expect. But there's still lots of work to be done on the cloud business. If it . Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. Here are 12 other startups analysts say it could buy to fend off competitors. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. Splunks stock price fell 20% over a six-month period, and the company. . This allows me to propose solutions that help my clients. Discover what Splunk is doing to bridge the data divide. Is this the software value stock for you too? VictorOps acquired by Splunk . 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.. . A spoksperson for Splunk cited its policy not to comment on rumors or speculation. 2005 - 2023 Splunk Inc. All rights reserved. In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. Invest better with The Motley Fool. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. With the Acquisition Bode Well for Cisco? 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.