Doug Merritt, Splunk's CEO for the past six years, stepped down in November. 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. Sep 12, 2021. Splunk said it does not comment on rumors or speculation. Transform your business in the cloud with Splunk. Making the world smarter, happier, and richer. 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. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. Splunk Acquisition Rumors. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. 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. Such a deal would be the largest ever for Cisco . 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. 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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. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . 4. 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. Is Responsible AI a Technology Issue or a Business Issue. We want to hear from you. Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. These two acquisitions formed the basis . Cisco and Splunk have been in the news since last week when The Wall . The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Get this delivered to your inbox, and more info about our products and services. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. 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. His clients may own shares of the companies mentioned. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. Daily chart of Splunk stock. Invest better with The Motley Fool. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. It's had to adapt its suite of services and the way it bills customers for this new cloud era. 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. Opinion: Yes, Theres a Housing Crisis. The industry leader for online information for tax, accounting and finance professionals. Deliver the innovative and seamless experiences your customers expect. I think Splunk is a very lucrative acquisition target for several major players including . Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. We are delighted that you'd like to resume your subscription. 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 be the networking giants biggest acquisition ever. Cisco recently made an offer for IT management and data analytics company Splunk. 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. Listen to article. Read the Wall Street Journal report here. 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. The report about said discussions comes not long after Microsoft's mammoth $70 . Splunk Redefines the Application Performance Monitoring Market. They said I didn't meet their bar for principal but P4-high. Sign In. These are used to let you login and to and ensure site security. Cost basis and return based on previous market day close. Splunk experts provide clear and actionable guidance. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. Cisco Systems has put down a takeover offer for Splunk worth more than $20 billion, according to a Friday evening report published by The Wall Street Journal. This includes computing devices, control systems, sensors, or anything else connected . The positive reaction from investors has some logic to it. 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. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. Cisco Has Discussed Deal for Software Company Splunk. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. The Motley Fool owns shares of and recommends Datadog and Splunk. Splunks stock was up 10.47 percent to $126.50 in after-hours trading Friday after the news was published. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. 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. 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. 2020 - 20211 year. She, however, added a word of caution. While the revenue has been growing consistently, it has not grown at especially remarkable rates. Microsoft CEO Satya Nadella has been going on a major shopping spree. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Jun 11, 2018 . 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. A Division of NBCUniversal. 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. 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. Already a member? 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. Initial filing by director officer or owner of more than ten percent. Statement of changes in beneficial ownership of securities. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. All quotes delayed a minimum of 15 minutes. Oct 20, 2020 . Learn how we support change for customers and communities. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. 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 acquired in 4 different US states, and 3 countries. 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. In that light, it's no wonder Cisco may see an opportunity to swoop in at this time of transition and uncertainty to take Splunk for itself. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. We've been tracking company news on mergers and acquisitions since 1999. The Wall Street Journal reported the potential deal earlier on Friday. Splunk jumped up 16 percent post-market on reports of the takeover bid. 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. acquisition-related adjustments, amortization of intangible assets and . The two companies have an existing partnership in which Cisco uses Splunks analytics surface insights and inject more automation across its security, networking, wireless, data center and collaboration portfolios. Transform your business in the cloud with Splunk. 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. Statement of changes in beneficial ownership of securities. Splunks acquisition of BugSense enhances our product offerings so that customers can analyze machine data directly from mobile devices and correlate it with other machine-generated data to gain Operational Intelligence. Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. 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. Head over to the Spiceworks Community to find answers. Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . $ + tax 10 . 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 SignalFx adds real-time monitoring and metrics for cloud infrastructure, microservices and applications, enhancing Splunks position as a leader in observability and APM. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. *Average returns of all recommendations since inception. Cisco Systems has put down a takeover offer for Splunk worth more than $20 billion, according to a Friday evening report published by The Wall Street Journal. 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. 5. The Motley Fool has a disclosure policy. Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. Give . The notes have an annual interest rate of just 0.75% per year payable to Silver Lake, and they mature in July 2026 if they haven't been repurchased or redeemed by then. Splunk experts provide clear and actionable guidance. Management expects to be in the black for the balance of the year ahead, so that's good news. Will the acquisition of Splunk change things? 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. 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. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . Invest better with The Motley Fool. View our Privacy Policy for more information. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. Watch: Retired Army Col. Paris Davis Awarded Medal of Honor, Why Barnes & Noble Is Copying Local Bookstores It Once Threatened, What Floridas Dying Oranges Tell Us About How Commodity Markets Work. 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.. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. The companys software can be used for managing IT systems, DevOps and security. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. It has remained stable since at around $122 per share. 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. 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. So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. The report cited people familiar with the matter and did not say where the potential deal stands. The offer was . Alphabet certainly has the war chest for such deals. Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. Cisco and Splunk representatives declined to comment. See why organizations around the world trust Splunk. The site owner may have set restrictions that prevent you from accessing the site. 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. You will be charged Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. The company also made four cloud-related acquisitions in 2020. With a price to sales ratio of 5.6. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The offer was made recently and the companies arent currently in active talks, some of the people said. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). . Plan your migration with helpful Splunk resources. Aug 22, 2019 . According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . Accelerate value with our powerful partner ecosystem. . All Rights Reserved. Billy Duberstein owns Amazon and Splunk. These rankings reflect its credentials and dominance in the space. Cisco is reportedly eyeing a Splunk acquisition. 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. For every deal we do, we probably look at 10-15 companies. Published Dec. 1, 2020 Updated Jan. 4, 2021. Our Standards: The Thomson Reuters Trust Principles. 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. Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. Discover what Splunk is doing to bridge the data divide. 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. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 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. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. 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 . You do not have access to www.sdxcentral.com. New transactions may be ongoing, let's look at the details. SEC Filings. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. This Splunk shareholder hopes management holds out for a much higher price than was reported. Directly supervise a team of 15 global staff consisting of product, delivery . Do you still have questions? Customer success starts with data success. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. Access timely security research and guidance. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. Vlocity gave . Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. In fact, many large companies use multiple vendors for internal data analytics. Craig is a proud Husky, having graduated from the University of Washington. 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. This Is the Largest Merger of the Past 20 Years. 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. 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. 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. Build resilience to meet todays unpredictable business challenges. Customer success starts with data success. 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.
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splunk acquisition rumors 2020
