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. Data is a real-time snapshot *Data is delayed at least 15 minutes. Our servers do not recognize your request. 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. Making the world smarter, happier, and richer. These are used to let you login and to and ensure site security. Access timely security research and guidance. 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. 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. Cisco Pivots to Software and Posts Solid Q2 Results - Futurum Research Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. Splunks acquisition of Streamlio accelerates Splunk's efforts in real-time stream processing and containerized multi-tenant cloud platform applications expanding Splunk's commitment to and participation in the open source software community. 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. 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. 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. Cisco and Splunk have been in the news since last week when The Wall . 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. Statement of changes in beneficial ownership of securities. Cisco's offer comes when Splunk is actively hunting for a new CEO following . 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 most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Cisco made $28 billion-plus takeover offer for Splunk Deliver the innovative and seamless experiences your customers expect. You can manage your preferences at any time. The positive reaction from investors has some logic to it. With the Acquisition Bode Well for Cisco? 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. 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. Give . "We have been . Splunk jumped up 16 percent post-market on reports of the takeover bid. Momentum Just Isn't Happening. 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. Learn how we support change for customers and communities. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. 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. for both companies. Dropbox (DBX) Acquisition Rumors | High Flying Investing During the years prior going back to 2017, Cisco closed between . 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. The people requested anonymity because the information is confidential. TechCrunch. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. The companys software can be used for managing IT systems, DevOps and security. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. Build resilience to meet todays unpredictable business challenges. But there's still lots of work to be done on the cloud business. The reported deal would be the . Should a deal for Splunk be consummated it would be by far Cisco's largest ever. 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. 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. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. Splunk Stock Lacks Momentum amid Insider Selling | Nasdaq List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. Senior Assistant Editor, Spiceworks Ziff Davis, Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. We would love to hear from you! This Splunk shareholder hopes management holds out for a much higher price than was reported. 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 offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. In 2020, asset management went on a shopping spree. Statement of changes in beneficial ownership of securities. VictorOps . Vlocity gave . SignalFx acquired by Splunk . Douglas A. McIntyre. SEC Filings. Opting out of these cookies may impact some minor site functions. It will also affirm Ciscos projected dominance in the sector in the years ahead. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. #2: Cisco-Splunk Acquisition Rumors - Channel Futures 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.. 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. Access timely security research and guidance. Splunk experts provide clear and actionable guidance. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. 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. The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. Cisco CEO Chuck Robbins. 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. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . Deals Rumor Mill: Splunk, Allied Universal, Worldline - Law360 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. The Omnition purchase follows Splunk's announcement last month that it planned to acquire cloud monitoring company SingalFx for $1.05 billion -- its largest acquisition ever. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. 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 . When submitting your ticket, please include the RayID detailed below for a faster resolution. People close to the company said the talks occurred recently, according to the Journal. The Leading Resource on Next-Generation IT Infrastructure. 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. Learn More. According to Futurum Research, the deal would be. 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. (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 growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. 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. It's had to adapt its suite of services and the way it bills customers for this new cloud era. . 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. Plan your migration with helpful Splunk resources. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. *Average returns of all recommendations since inception. Statement of changes in beneficial ownership of securities. Splunk experts provide clear and actionable guidance. 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. 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 . Read the Wall Street Journal report here. Directly supervise a team of 15 global staff consisting of product, delivery . 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. 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. 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. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. As Slack acquisition rumors swirl, a look at Salesforce's six biggest She, however, added a word of caution. That would equate to a market cap of just over $25 billion. Splunk . Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. Here are 12 other startups analysts say it could buy to fend off competitors. Splunk has acquired in 4 different US states, and 3 countries. 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. In any case, the reporting suggested the offer was more than $20 billion. Every sell-side analyst on Wall Street has a higher price target than Friday's close, with the lowest at $120 per share, and the highest at $225 per share, with the average at $162. Cisco made $20 billion-plus takeover offer for Splunk -WSJ Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. It has remained stable since at around $122 per share. . Frisco, Texas, United States. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org Deliver the innovative and seamless experiences your customers expect. His clients may own shares of the companies mentioned. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. Top Stocks 2021: If you Only Buy One IOT Stock, It Better Be Splunk 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 . This page tracks and reports on important merger news in real-time . Microsoft may acquire Mandiant, a cybersecurity firm It has remained stable since at around $122 per share. Cisco makes $20 billion-plus takeover offer for Splunk - CNN San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. 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. Opinion: Yes, Theres a Housing Crisis. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. Cisco did not immediately respond to a request for comment. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. Splunks stock price fell 20% over a six-month period, and the company. She can be reached at gnarcisi@thechannelcompany.com. 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. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). Rigor's monitoring and optimization solutions complement the other Splunk offerings. These two acquisitions formed the basis . Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. The 7 Biggest Mergers and Acquisitions Stories of the Year Such a deal would be the largest ever for Cisco . 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. Alex Murdaughs Trial Lasted Six Weeks. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . 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). The industry leader for online information for tax, accounting and finance professionals. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Still, it does not have currently have a . 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 final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. Asset management M&A: Who's buying and selling in 2021 - sjo3ekt.js 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 . . The Motley Fool owns shares of and recommends Datadog and Splunk. Splunk Becomes A Strategic Acquisition Target For - SeekingAlpha Splunk Drops as CTO Departure Sparks Downgrades - TheStreet Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. We use cookies to ensure you get the best experience on our website. Build resilience to meet todays unpredictable business challenges. But looking under the hood to ARR and the cloud segment shows a much better growth picture. Aug 22, 2019 . Aruba, a Hewlett Packard Enterprise Company, AMD & Supermicro Performance Intensive Computing, Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series. It will also affirm Ciscos projected dominance in the sector in the years ahead. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks.
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