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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. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. 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. (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 . This Is the Largest Merger of the Past 20 Years. Read more . 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. SDxCentral employs cookies to improve your experience on our site, to analyze traffic and performance, and to serve personalized content and advertising relevant to your professional interests. Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. You can manage your preferences at any time. 3. 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. . 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). See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. Splunk finished trading on Friday at roughly an $18 billion market cap, and after the after-hours surge, the market cap rose to $20.2 billion. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. Cloudmeter. TechCrunch. 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. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. 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. How far over that figure will determine whether the acquisition goes through or not. Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Read focused primers on disruptive technology topics. 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. Announcement Date: 6/6/2019. Splunk to buy security intelligence-sharing startup TruStar 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. San Jose, Calif.-based Cisco did not respond to CRNs request for comment on the alleged deal by publication time. Top Stocks 2021: If you Only Buy One IOT Stock, It Better Be Splunk 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. SEC Filings. Management expects to be in the black for the balance of the year ahead, so that's good news. 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 reportedly eyeing a Splunk acquisition. SignalFx acquired by Splunk . 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. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. 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. 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. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. 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. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. 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. You do not have access to www.sdxcentral.com. 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. 2005 - 2023 Splunk Inc. All rights reserved. Is Splunk Stock a Buy After Getting a $1 Billion Investment - Nasdaq You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. 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. Will the acquisition of Splunk change things? List of Splunk's 16 Acquisitions, including TwinWave And TruSTAR 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. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. VictorOps acquired by Splunk . Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. See why organizations around the world trust Splunk. $20 Billion Splunk Acquisition Could Put Cisco Atop Security Field While the offer from Cisco is a nice indicator of Splunk's value, as a Splunk shareholder, I really hope management rejects the offer or demands a much higher price. Company:Splunk - HandWiki 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. Billy Duberstein owns Amazon and Splunk. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. Already a member? Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . 13 Companies Cisco Could Buy to Beat Rising Competitors - Business Insider According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. Transform your business in the cloud with Splunk. 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. His clients may own shares of the companies mentioned. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. "We have been . These are used to let you login and to and ensure site security. #2: Cisco-Splunk Acquisition Rumors - Channel Futures BILL HOLDINGS, INC. : Shareholders Board Members Managers and Company Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Splunk . Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. Aug 22, 2019 . 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. Splunk named after spelunking, the sport of cave exploring mines data for insights, including security threats, a business that grew in importance as the coronavirus pandemic quickly forced many workers online. Splunk to Acquire Plumbr and Rigor, Expanding the World's Most Listen to article. 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. 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. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . 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). Learn how we support change for customers and communities. Salesforce buys Slack for $27.7 billion in cloud company's - CNBC acquisition-related adjustments, amortization of intangible assets and . 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. , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Splunk Stock Lacks Momentum amid Insider Selling | Nasdaq This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . 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 . Cisco recently made an offer for IT management and data analytics company Splunk. See why organizations trust Splunk to help keep their digital systems secure and reliable. Plan your migration with helpful Splunk resources. 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. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. . Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. Cloudera Agrees to $5.3B Private Equity Buyout; Stock Up 24% Splunk experts provide clear and actionable guidance. 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. Cisco did not immediately respond to a request for comment. 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. 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 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. StreetInsider.com - Mergers News Cisco and Splunk have been in the news since last week when The Wall . Data is a real-time snapshot *Data is delayed at least 15 minutes. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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. Precept is a leading multimedia networking software company. This one was a gift for the core CRM product. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. Nik Mithani - Oklahoma State University - LinkedIn The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. See here for a complete list of exchanges and delays. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. As Slack acquisition rumors swirl, a look at Salesforce's six biggest 10 . 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. (if applicable) for The Wall Street Journal. 2020 - 20211 year. 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. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. splunk acquisition rumors 2020 - manoharinternational.com 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. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. My core competency is finding out people's issues in business. Daily chart of Splunk stock. Customer Service. Splunk jumped up 16 percent post-market on reports of the takeover bid. 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. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. Splunk . Heritage Business Systems. Cisco Pivots to Software and Posts Solid Q2 Results - Futurum Research Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The offer was . This allows me to propose solutions that help my clients. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. Cisco: Time To Bring Forth The Elephant Gun - SeekingAlpha Momentum Just Isn't Happening. Cisco is using acquisitions to help it grow . Dropbox (DBX) Acquisition Rumors | High Flying Investing Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. 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. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. 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. 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. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. Report: Cisco made $20B takeover offer for software maker Splunk Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. 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). Splunks stock price fell 20% over a six-month period, and the company. Anyone can read what you share. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Customer success starts with data success. In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. The Motley Fool owns shares of and recommends Datadog and Splunk. Statement of changes in beneficial ownership of securities. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Acquisitions | Xerox Newsroom The Motley Fool has a disclosure policy. Why This Splunk Shareholder Hopes It Doesn't Sell to Cisco Splunk experts provide clear and actionable guidance. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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.