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Cloudmeter. Here are 12 other startups analysts say it could buy to fend off competitors. How far over that figure will determine whether the acquisition goes through or not. 2005 - 2023 Splunk Inc. All rights reserved. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. 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. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . and is author of the Entrepreneur Journeys book series and Vision India 2020. 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. Daily chart of Splunk stock. The report about said discussions comes not long after Microsoft's mammoth $70 . 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. Splunk - Wikipedia People close to the company said the talks occurred recently, according to the Journal. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. Splunk . 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 . Cisco and Splunk have been in the news since last week when The Wall . 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. Microsoft may acquire Mandiant, a cybersecurity firm Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. Statement of changes in beneficial ownership of securities. Deliver the innovative and seamless experiences your customers expect. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, Joe Biden Has Advocated Cutting Social Security Benefits 3 Times, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. To make the world smarter, happier, and richer. . According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. 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? 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. Splunk Acquisition Rumors. Management expects to be in the black for the balance of the year ahead, so that's good news. You do not have access to www.sdxcentral.com. 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. 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 . 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. It has remained stable since at around $122 per share. 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 . Cisco's Planned $20B Splunk Acquisition: Boom or Bust? Then there's also the balance sheet. The reported deal would be the . Cisco CEO Chuck Robbins. Build, own, manage and support B2B and B2C web and mobile properties. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. See why organizations trust Splunk to help keep their digital systems secure and reliable. Sign up for free newsletters and get more CNBC delivered to your inbox. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. Gert Van Damme - Lead Business Consultant NetSuite ERP - LinkedIn Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. Got a confidential news tip? Our Standards: The Thomson Reuters Trust Principles. 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. 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. Who Will Cisco Buy Instead of Splunk? - SDxCentral 5. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . Splunks stock was up 10.47 percent to $126.50 in after-hours trading Friday after the news was published. TechCrunch. 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. Splunk Mergers and Acquisitions Summary | Mergr Do you still have questions? 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. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. Making the world smarter, happier, and richer. 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. Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. Build resilience to meet todays unpredictable business challenges. Learn how we support change for customers and communities. Cisco recently made an offer for IT management and data analytics company Splunk. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. VictorOps acquired by Splunk . Learn More. 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. 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. 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 . 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. Mergers and Acquisitions - 24/7 Wall St. 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. Cisco Reportedly Made $20B Bid For Software Giant Splunk Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. 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. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. Learn how we support change for customers and communities. Cost basis and return based on previous market day close. In fact, many large companies use multiple vendors for internal data analytics. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Craig Galbraith. Cisco and Splunk representatives declined to comment. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. *Average returns of all recommendations since inception. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. 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. 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 . Cost basis and return based on previous market day close. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. Alphabet certainly has the war chest for such deals. 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. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. (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 . You will be charged Cloud ARR was only just over one-third of total ARR in the last quarter, so there will likely be more variability in overall growth and profitability in the next couple of years as more customers make the switch. Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Splunk experts provide clear and actionable guidance. 10 major Mergers and Acquisitions of 2020 | AlphaSense With the Acquisition Bode Well for Cisco? 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. 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. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Th ecompany serves four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others. Transform your business in the cloud with Splunk. That bidder was Sycamore Partners, a . 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. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. 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. Every sell-side analyst on Wall Street has a higher price target than . You may change your billing preferences at any time in the Customer Center or call 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The companys software can be used for managing IT systems, DevOps and security. You can manage your preferences at any time. Cisco made $20 billion-plus takeover offer for Splunk -WSJ So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. Acquisitions - Acquisition Summary - Cisco 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. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. BILL HOLDINGS, INC. : Shareholders Board Members Managers and Company Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. This page tracks and reports on important merger news in real-time . 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. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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). See why organizations around the world trust Splunk. Splunk Becomes A Strategic Acquisition Target For - SeekingAlpha 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. The positive reaction from investors has some logic to it. Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. Give . But looking under the hood to ARR and the cloud segment shows a much better growth picture. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. Is this the software value stock for you too? 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. From 2008 to 2010, Mitra . Report: Cisco made $20B takeover offer for software maker Splunk Dropbox (DBX) Acquisition Rumors | High Flying Investing 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. Announcement Date: 6/6/2019. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. His clients may own shares of the companies mentioned. Published Dec. 1, 2020 Updated Jan. 4, 2021. 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. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . 13 Companies Cisco Could Buy to Beat Rising Competitors - Business Insider 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. 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. 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. 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.. 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. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. The combination could create a security powerhouse that would combine Ciscos strength in network security with San Francisco-based Splunks strength in data-focused security operations. That certainly indicates the new cloud offerings are very successful with customers. The purchase marks one of the largest ever for the software industry. 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. Craig is a proud Husky, having graduated from the University of Washington. 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. According to Futurum Research, the deal would be. 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. A Division of NBCUniversal. 4. Microsoft acquires SE or Capcom?It is rumored that there is no - iMedia As Slack acquisition rumors swirl, a look at Salesforce's six biggest 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. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. I think Splunk is a very lucrative acquisition target for several major players including . This is because of several transitions the company is undertaking at once. The report cited people familiar with the matter and did not say where the potential deal stands. Dropbox is a 9.3 billion market cap company. Making the world smarter, happier, and richer. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. 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. Plan your migration with helpful Splunk resources. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. This Is the Largest Merger of the Past 20 Years. 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. 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. 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. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Splunk jumped up 16 percent post-market on reports of the takeover bid. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons Shares of Splunk have fallen 49% since reaching a record in September 2020. 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.