SEC Filings. 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. Vlocity gave . 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. Cost basis and return based on previous market day close. Splunk Redefines the Application Performance Monitoring Market. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. 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. TechCrunch. Cisco Has Discussed Deal for Software Company Splunk. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. For every deal we do, we probably look at 10-15 companies. The initial conversion price is $160 per share. We are constantly evaluating potential opportunities. 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. We are delighted that you'd like to resume your subscription. Build resilience to meet todays unpredictable business challenges. 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. 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 . , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. She can be reached at gnarcisi@thechannelcompany.com. In any case, the reporting suggested the offer was more than $20 billion. (if applicable) for The Wall Street Journal. To make the world smarter, happier, and richer. I think Splunk is a very lucrative acquisition target for several major players including . splunk acquisition rumors 2020lakeland correctional facility splunk acquisition rumors 2020. matthew 13:11 studylight; what game do bakers like to play. 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. 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. The report about said discussions comes not long after Microsoft's mammoth $70 . Other tech companies have made that transition in the past, but when they do undertake this transition, they will initially show revenue declines, as larger multi-year deals are replaced by smaller annual but recurring revenue. 3rd Party Cookie de-Personalization - We configure 3rd party analytics cookies to anonymize IP address and 3rd party targeting cookies to only set non-personalized information in these cookies to respect your privacy. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons IT systems management, cybersecurity, and observability company Splunk (SPLK -1.40%) surged more than 11% late Friday, after The Wall Street Journal reported tech giant Cisco Systems (CSCO 1.54%) had made an offer to buy the company for more than $20 billion. These are used to let you login and to and ensure site security. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. 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. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. . 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. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. 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. When submitting your ticket, please include the RayID detailed below for a faster resolution. Get this delivered to your inbox, and more info about our products and services. 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. Cisco's offer comes when Splunk is actively hunting for a new CEO following . The Motley Fool has a disclosure policy. 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. . In November last year, San Francisco-based Splunk announced Doug Merritt has stepped down as its chief executive officer (CEO) and that the company's chair, Graham Smith, would be the interim CEO. 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. Splunk has acquired in 4 different US states, and 3 countries. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. SEPTEMBER 2013. eric kocher generation kill; blue shield of northeastern ny claims address; alycia debnam carey siblings; cauliflower jalapeno nobu; Cisco is using acquisitions to help it grow . 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. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. That certainly indicates the new cloud offerings are very successful with customers. Give . The top source for up-to-the-minute company Merger News. 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. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. The people requested anonymity because the information is confidential. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. 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. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . 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. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. 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.. 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. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. 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 . 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 . About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. 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. 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. Dropbox is a 9.3 billion market cap company. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. You may cancel your subscription at anytime by calling 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. Transform your business in the cloud with Splunk. Cisco Sues Acacia Over Termination of $2.6B Merger Deal, Cisco Revamps Webex People Insights To Meet Hybrid Workplace Needs, Cisco Breaks Into CXaaS Market With Two Acquisitions, VMware and Cisco Continue To Battle for SD-WAN Supremacy. Statement of changes in beneficial ownership of securities. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. Discover what Splunk is doing to bridge the data divide. 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. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. 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 offer was made recently and the companies arent currently in active talks, some of the people said. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. 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. SignalFx . Learn how we support change for customers and communities. Customer Service. See why organizations around the world trust Splunk. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Read the Wall Street Journal report here. You will be charged The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. 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 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. But there's still lots of work to be done on the cloud business. Our Standards: The Thomson Reuters Trust Principles. New transactions may be ongoing, let's look at the details. (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 . Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . 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 report cited people familiar with the matter and did not say where the potential deal stands. SignalFx acquired by Splunk . Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. Published Dec. 1, 2020 Updated Jan. 4, 2021. Splunks acquisition of SignalSense enables Splunk to further innovate in our market-leading machine data platform and expands Splunks expertise in machine learning and cloud applications. Alex Murdaughs Trial Lasted Six Weeks. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. 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. 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% . Silver Lake thus isn't the only investor in line to convert debt into new stock, and this isn't the cleanest balance sheet in the software industry at the moment. Splunk Acquisition Rumors. While the revenue has been growing consistently, it has not grown at especially remarkable rates. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. Customer Service. We've been tracking company news on mergers and acquisitions since 1999. From 2008 to 2010, Mitra . According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. 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. His clients may own shares of the companies mentioned. Splunk's software has gained popularity as a tool for spotting security threats. 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 The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. The industry leader for online information for tax, accounting and finance professionals. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Oct 20, 2020 . Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. Access timely security research and guidance. Splunk experts provide clear and actionable guidance. Such a deal would be the largest ever for Cisco . 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. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. These rankings reflect its credentials and dominance in the space. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . The analyst believes Cloudera shareholders are getting a good deal with the private equity buyout."We note CLDR has been the target of acquisition rumors since mid-2020, and thus we view the . Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. Splunk . 2005 - 2023 Splunk Inc. All rights reserved. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. Announcement Date: 6/6/2019. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. Transform your business in the cloud with Splunk. 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. The site owner may have set restrictions that prevent you from accessing the site. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. and is author of the Entrepreneur Journeys book series and Vision India 2020. 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. During the years prior going back to 2017, Cisco closed between . Craig Galbraith. SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in . 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. . Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. Listen to article. 3. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. 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.