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. 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. 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. Splunk experts provide clear and actionable guidance. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. 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. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. The offer was made recently and the companies arent currently in active talks, some of the people said. 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 . Accelerate value with our powerful partner ecosystem. Jun 11, 2018 . Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. 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. Billy Duberstein owns Amazon and Splunk. Customer success starts with data success. The Motley Fool has a disclosure policy. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. 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 top source for up-to-the-minute company Merger News. Listen to article. 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. Then there's also the balance sheet. Access timely security research and guidance. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. for both companies. 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. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. It's not that I am clearvoyant, it is just my nature to keep asking questions, truly listen to the answers and connect the dots until I have a clear understanding. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. These rankings reflect its credentials and dominance in the space. Dropbox is a 9.3 billion market cap company. 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. Access timely security research and guidance. Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. Give . Our Standards: The Thomson Reuters Trust Principles. 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. Cisco did not immediately respond to a request for comment. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. 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 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. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. 2005 - 2023 Splunk Inc. All rights reserved. The purchase marks one of the largest ever for the software industry. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. The Silicon Valley-based tech investor recently plopped $1 billion down on Splunk, a significant cash infusion given Splunk's current enterprise value sits at $23 billion. 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. Cisco Systems, the technology conglomerate, has held discussions with the software company Splunk about buying it, although no deal is currently on the table, two people familiar with the matter told The New York Times on Friday. A statement of beneficial ownership of common stock by certain persons. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org . We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Learn More. 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.. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. Cisco's offer comes when Splunk is actively hunting for a new CEO following . As a shareholder, I'm certainly hoping Splunk holds out for a higher price. These two acquisitions formed the basis . Transform your business in the cloud with Splunk. The . To make the world smarter, happier, and richer. Announcement Date: 6/6/2019. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. . 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. 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. Customer Service. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. 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. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. 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. My core competency is finding out people's issues in business. (if applicable) for The Wall Street Journal. Precept is a leading multimedia networking software company. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. Alex Murdaugh Receives Life Sentence: What Happens Now? Splunk Acquisition Rumors. 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. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. acquisition-related adjustments, amortization of intangible assets and . We are constantly evaluating potential opportunities. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. 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. With the Acquisition Bode Well for Cisco? Cisco Has Discussed Deal for Software Company Splunk. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. Apr 16, 2021 1:02 PM EDT. 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 . 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. We would love to hear from you! Splunk Application Performance Monitoring. 10 . According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. Got a confidential news tip? The report cited people familiar with the matter and did not say where the potential deal stands. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Cisco recently made an offer for IT management and data analytics company Splunk. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. See here for a complete list of exchanges and delays. Sign In. Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Cisco and Splunk representatives declined to comment. 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. And Kurian an Oracle veteran knows how to . Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. *Average returns of all recommendations since inception. 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 people requested anonymity because the information is confidential. In any case, the reporting suggested the offer was more than $20 billion. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 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. Splunk's software has gained popularity as a tool for spotting security threats. It will also affirm Ciscos projected dominance in the sector in the years ahead. 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 . Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. 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. See why organizations around the world trust Splunk. The company has been pivoting to a recurring revenue model by shifting from traditional software licenses to cloud-based subscriptions while also steadily growing the customer base. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. Read more . 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 reported deal would be the . Making the world smarter, happier, and richer. For every deal we do, we probably look at 10-15 companies. Is Responsible AI a Technology Issue or a Business Issue. His clients may own shares of the companies mentioned. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. Directly supervise a team of 15 global staff consisting of product, delivery . 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. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. You may cancel your subscription at anytime by calling People close to the company said the talks occurred recently, according to the Journal. Read focused primers on disruptive technology topics. This includes computing devices, control systems, sensors, or anything else connected . If you feel that youve landed on this page in error, please contact SDxCentral Support. Initial filing by director officer or owner of more than ten percent. Customer success starts with data success. Cloudmeter. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. It has remained stable since at around $122 per share. SEC Filings. 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. So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. Such a deal would be the largest ever for Cisco . So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. and is author of the Entrepreneur Journeys book series and Vision India 2020. If it . 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. Here are 12 other startups analysts say it could buy to fend off competitors. 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 . He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. 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. This is because of several transitions the company is undertaking at once. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Management expects to be in the black for the balance of the year ahead, so that's good news. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. Momentum Just Isn't Happening. 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. Statement of changes in beneficial ownership of securities. You will be notified in advance of any changes in rate or terms. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons Learn how we support change for customers and communities. See why organizations trust Splunk to help keep their digital systems secure and reliable. Discover what Splunk is doing to bridge the data divide. Get this delivered to your inbox, and more info about our products and services. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. 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. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. Initial filing by director officer or owner of more than ten percent. In fact, many large companies use multiple vendors for internal data analytics. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. Statement of changes in beneficial ownership of securities. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. This Splunk shareholder hopes management holds out for a much higher price than was reported. 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. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Microsoft said last month that it was planning to acquire the video game company Activision Blizzard for nearly $70 billion, and Salesforce acquired the workplace software company Slack last year for $27.7 billion. 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. In 2020, asset management went on a shopping spree. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. Ciscos market capitalization is $227 billion. Microsoft CEO Satya Nadella has been going on a major shopping spree. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. 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. Splunk . Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. 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. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. SEPTEMBER 2013. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. Splunk said it does not comment on rumors or speculation. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. From 2008 to 2010, Mitra . Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 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. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. mutant fly stardew valley; nba waterboy salary per hour near new jersey; wimbledon draw 2022 wiki; london classical concerts 2022; beadnell camping pods The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. 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. 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.

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