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Cisco CEO Chuck Robbins. 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. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. Cost basis and return based on previous market day close. Splunk Redefines the Application Performance Monitoring Market. 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. 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. The site owner may have set restrictions that prevent you from accessing the site. You do not have access to www.sdxcentral.com. Invest better with The Motley Fool. Cisco is reportedly eyeing a Splunk acquisition. So what should new GCP leader Thomas Kurian do? The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. Vlocity gave . 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. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. 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. Chuck Robbins, CEO, Cisco Systems, speaking at the World Economic Forum, Davos, Switzerland, January 21, 2020. splunk acquisition rumors 2020lakeland correctional facility splunk acquisition rumors 2020. matthew 13:11 studylight; what game do bakers like to play. "We have been . 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 . Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. . Press Release: 6/6/2019 Xerox Acquires Two New Dealers to Expand Presence in the Small-To-Medium Sized Business Market. Douglas A. McIntyre. Splunk . The positive reaction from investors has some logic to it. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. Sign In. Statement of changes in beneficial ownership of securities. However, cash on hand and positive free cash flow will fund that new $1 billion share repurchase program, which should help boost earnings per share over time. The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. These two acquisitions formed the basis . Statement of changes in beneficial ownership of securities. 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. 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. That would equate to a market cap of just over $25 billion. 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. Do you still have questions? Should a deal for Splunk be consummated it would be by far Cisco's largest ever. Splunk said it does not comment on rumors or speculation. 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). Save Search . 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. 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. Billy Duberstein owns Amazon and Splunk. 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. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. Listen to article. The top source for up-to-the-minute company Merger 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. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. See why organizations around the world trust Splunk. Company Location: Mount Laurel, NJ. 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? 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. We would love to hear from you! 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 . 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. 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. Our servers do not recognize your request. Splunk . 4. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. 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. 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, own, manage and support B2B and B2C web and mobile properties. When submitting your ticket, please include the RayID detailed below for a faster resolution. 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. Cloud annual recurring revenue (ARR) has been off to the races and was up 83% year over year in Q1 fiscal 2022 to $833 million, but these changes have throttled overall revenue expansion. 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. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. $ + tax It's had to adapt its suite of services and the way it bills customers for this new cloud era. 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 . Two Days Mattered Most. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. 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. We are delighted that you'd like to resume your subscription. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. We use cookies to ensure you get the best experience on our website. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. Learn More. Initial filing by director officer or owner of more than ten percent. 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. 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. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. The Motley Fool has a disclosure policy. Discover what Splunk is doing to bridge the data divide. 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. 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. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. 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. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. All Rights Reserved. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . These are used to let you login and to and ensure site security. 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. 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. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. splunk acquisition rumors 2020; joaquin niemann sponsors. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. Splunks 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. Apr 16, 2021 1:02 PM EDT. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Customer Service. The purchase marks one of the largest ever for the software industry. Daily chart of Splunk stock. Shares of Splunk ( SPLK) - Get Free Report dropped Friday after the software developer disclosed that its chief technology officer, Tim Tully, would leave next month. You may cancel your subscription at anytime by calling The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. To make the world smarter, happier, and richer. 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. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. 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. 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. Will Townsend. 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. , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. Transform your business in the cloud with Splunk. The Leading Resource on Next-Generation IT Infrastructure. SEPTEMBER 2013. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. Customer Service. *Average returns of all recommendations since inception. In spite of these strong qualities, Splunk traded at just 7.5 times trailing sales at the end of trading Friday -- a relative bargain in the high-growth software sector. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. 2023 CNBC LLC. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. According to Futurum Research, the deal would be. Every sell-side analyst on Wall Street has a higher price target than . Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Give . You will be notified in advance of any changes in rate or terms. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). Jun 11, 2018 . Discover what Splunk is doing to bridge the data divide. Splunk experts provide clear and actionable guidance. Still, it does not have currently have a . 2005 - 2023 Splunk Inc. All rights reserved. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. The report cited people familiar with the matter and did not say where the potential deal stands. Oct 20, 2020 . VictorOps acquired by Splunk . 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. 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. 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. 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. 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. Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. This includes computing devices, control systems, sensors, or anything else connected . Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. The company also made four cloud-related acquisitions in 2020. 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. That bidder was Sycamore Partners, a . See here for a complete list of exchanges and delays. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. June 5. splunk acquisition rumors 2020 . Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. 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. Customer success starts with data success. Head over to the Spiceworks Community to find answers. 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. 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