splunk acquisition rumors 2020

That certainly indicates the new cloud offerings are very successful with customers. The site owner may have set restrictions that prevent you from accessing the site. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Such a deal would be the largest ever for Cisco . Microsoft CEO Satya Nadella has been going on a major shopping spree. 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). Cisco Systems made a takeover offer worth more than US$20 billion (A$28 billion) for software maker Splunk, the Wall Street Journal reported, citing people familiar with the matter. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. 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. Splunk Redefines the Application Performance Monitoring Market. Cisco is reportedly eyeing a Splunk acquisition. Plan your migration with helpful Splunk resources. Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. She, however, added a word of caution. Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. 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. Is this the software value stock for you too? a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. You may cancel your subscription at anytime by calling Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Splunk is currently unprofitable, and the stock has been unable to bounce back from last year's challenges with this interest rate cloud hanging over it. 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. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. 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. Read the Wall Street Journal report here. 10 . This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. 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. 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. Splunk Application Performance Monitoring. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. It will also affirm Ciscos projected dominance in the sector in the years ahead. 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? Doug Merritt, Splunk's CEO for the past six years, stepped down in November. 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. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. But the advent of the cloud has shifted these needs away from legacy IT systems, and Splunk wasn't exactly ready for the change. Though the two companies didnt react to the rumors for a few days after they surfaced, Chuck Robbins, Ciscos chairman and CEO, confirmed the developments during its Q2 earnings call. Splunk Acquisition Rumors. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. From 2008 to 2010, Mitra . Customer success starts with data success. Microsoft's acquisition of B's parent company for $7.5 billion in March of this year shocked the gaming industry and raised the level of XBOX's camp. Momentum Just Isn't Happening. 2005 - 2023 Splunk Inc. All rights reserved. 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. 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). , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. She can be reached at gnarcisi@thechannelcompany.com. Learn how we support change for customers and communities. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Our servers do not recognize your request. Heritage Business Systems. 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. 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. Directly supervise a team of 15 global staff consisting of product, delivery . These two acquisitions formed the basis . These are used to let you login and to and ensure site security. Sign up for free newsletters and get more CNBC delivered to your inbox. 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 . It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. Opting out of these cookies may impact some minor site functions. However, as Splunk gets further through the transition, revenue growth will gradually track closer to annualized recurring revenue (ARR), which includes the annualized value of all cloud, on-premise, and maintenance service contracts. Statement of changes in beneficial ownership of securities. 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. 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. 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. 3. 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. Anyone can read what you share. Cloudmeter. The offer was . These rankings reflect its credentials and dominance in the space. The positive reaction from investors has some logic to it. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Cisco did not immediately respond to a request for comment. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. But there's still lots of work to be done on the cloud business. $ + tax 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. This Splunk shareholder hopes management holds out for a much higher price than was reported. Statement of changes in beneficial ownership of securities. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. 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. The Wall Street Journal reported the potential deal earlier on Friday. . 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 June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. Splunks stock price fell 20% over a six-month period, and the company. 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. 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. 2005 - 2023 Splunk Inc. All rights reserved. The industry leader for online information for tax, accounting and finance professionals. You do not have access to www.sdxcentral.com. 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. 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. The report cited people familiar with the matter and did not say where the potential deal stands. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. 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 notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. *Average returns of all recommendations since inception. The report about said discussions comes not long after Microsoft's mammoth $70 . Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. We are constantly evaluating potential opportunities. 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. So what should new GCP leader Thomas Kurian do? 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 experts provide clear and actionable guidance. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. 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. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. 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. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. It will also affirm Ciscos projected dominance in the sector in the years ahead. 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. 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. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. While the revenue has been growing consistently, it has not grown at especially remarkable rates. Splunks acquisition of KryptonCloud expands Splunks ability to innovate for IoT use cases with our market-leading machine data platform. 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. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. 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. 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 acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. 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. A Division of NBCUniversal. 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 . 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. Making the world smarter, happier, and richer. Splunks acquisition of Metafor expands our capabilities in IT operations and security incident and event management (SIEM) by adding machine learning and anomaly detection to our solutions, which helps customers detect unknown and malicious threats. Save Search . In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. 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 ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Head over to the Spiceworks Community to find answers. 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. 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). 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. Learn More. Get this delivered to your inbox, and more info about our products and services. 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. Cisco and Splunk representatives declined to comment. So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. 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. Douglas A. McIntyre. SignalFx . Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. With the Acquisition Bode Well for Cisco? 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. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. 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. This Is the Largest Merger of the Past 20 Years. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. This is because of several transitions the company is undertaking at once. Rigor's monitoring and optimization solutions complement the other Splunk offerings. Here are 12 other startups analysts say it could buy to fend off competitors. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. Splunk jumped up 16 percent post-market on reports of the takeover bid. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Two Days Mattered Most. Cisco and Splunk have been in the news since last week when The Wall . The Motley Fool has a disclosure policy. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. Give . Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. 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. This allows me to propose solutions that help my clients. Do you still have questions? Splunk's software has gained popularity as a tool for spotting security threats. 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. 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.. To make the world smarter, happier, and richer. Cisco is using acquisitions to help it grow . 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. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. See why organizations around the world trust Splunk. 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). 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. According to Futurum Research, the deal would be. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. Customer success starts with data success. Got a confidential news tip? Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. 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. Build resilience to meet todays unpredictable business challenges. Sep 12, 2021. VictorOps acquired by Splunk . acquisition-related adjustments, amortization of intangible assets and . 2023 CNBC LLC. 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. 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.. Learn More. . 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? About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. SEPTEMBER 2013. 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 . You may change your billing preferences at any time in the Customer Center or call

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