Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Read focused primers on disruptive technology topics. But there's still lots of work to be done on the cloud business. 2020 - 20211 year. Every sell-side analyst on Wall Street has a higher price target than . Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. Making the world smarter, happier, and richer. Cisco is reportedly eyeing a Splunk acquisition. 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. 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 . Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. 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. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. 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. eric kocher generation kill; blue shield of northeastern ny claims address; alycia debnam carey siblings; cauliflower jalapeno nobu; Network gear maker Cisco Systems has made a takeover offer worth more than $20 billion for software maker Splunk, The Wall Street Journal reported on Friday, citing people familiar with the matter. 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. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. 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. Across 2020, Splunk's cloud business represented nearly half of the company's software bookings, enabling organizations to migrate workloads and applications to the cloud, manage colossal spikes in data volume or increase visibility into cloud security risks. Published Dec. 1, 2020 Updated Jan. 4, 2021. 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. "We have been . Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. Splunk experts provide clear and actionable guidance. 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 reported deal would be the . 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? 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. VictorOps acquired by Splunk . You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. 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. Will the acquisition of Splunk change things? Cisco and Splunk have been in the news since last week when The Wall . The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. 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. SignalFx . Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Accelerate value with our powerful partner ecosystem. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. She can be reached at gnarcisi@thechannelcompany.com. 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. 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. mutant fly stardew valley; nba waterboy salary per hour near new jersey; wimbledon draw 2022 wiki; london classical concerts 2022; beadnell camping pods You will be notified in advance of any changes in rate or terms. 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. 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). 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. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. We've been tracking company news on mergers and acquisitions since 1999. 10 . So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. 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. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. 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. 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. 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. A Division of NBCUniversal. During the years prior going back to 2017, Cisco closed between . In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. 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. Vlocity gave . Will Townsend. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. They said I didn't meet their bar for principal but P4-high. 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. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. See why organizations around the world trust Splunk. Transform your business in the cloud with Splunk. This page tracks and reports on important merger news in real-time . That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. 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. 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. For every deal we do, we probably look at 10-15 companies. Learn More. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. But looking under the hood to ARR and the cloud segment shows a much better growth picture. Splunk Application Performance Monitoring. It will also affirm Ciscos projected dominance in the sector in the years ahead. 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. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . 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. We are constantly evaluating potential opportunities. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. Read the Wall Street Journal report here. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. 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. Give . Splunk . Splunks stock price fell 20% over a six-month period, and the company. 5. 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. That would equate to a market cap of just over $25 billion. We want to hear from you. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Billy Duberstein owns Amazon and Splunk. 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. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. 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. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. Save Search . 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% . 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. Our servers do not recognize your request. Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. 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. 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. 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. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. You may change your billing preferences at any time in the Customer Center or call 2023 CNBC LLC. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. 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. In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. 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. 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. acquisition-related adjustments, amortization of intangible assets and . Jun 11, 2018 . 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 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. Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. Invest better with The Motley Fool. How far over that figure will determine whether the acquisition goes through or not. This one was a gift for the core CRM product. 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). About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. That certainly indicates the new cloud offerings are very successful with customers. Announcement Date: 6/6/2019. We use cookies to ensure you get the best experience on our website. Discover what Splunk is doing to bridge the data divide. Anyone can read what you share. View our Privacy Policy for more information. SEPTEMBER 2013. The people requested anonymity because the information is confidential. 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. In fact, many large companies use multiple vendors for internal data analytics. 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. 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. 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. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Sign up for free newsletters and get more CNBC delivered to your inbox. 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.. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. Still, it does not have currently have a . Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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.
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