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. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. 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. That certainly indicates the new cloud offerings are very successful with customers. acquisition-related adjustments, amortization of intangible assets and . In fact, many large companies use multiple vendors for internal data analytics. $ + tax Read focused primers on disruptive technology topics. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org 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. Invest better with The Motley Fool. This includes computing devices, control systems, sensors, or anything else connected . Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. 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. Splunk is well off its highs and seems undervalued. Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. Customer Service. "We have been . The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. A statement of beneficial ownership of common stock by certain persons. According to Futurum Research, the deal would be. During the years prior going back to 2017, Cisco closed between . Splunk has acquired in 4 different US states, and 3 countries. But there's still lots of work to be done on the cloud business. splunk acquisition rumors 2020; joaquin niemann sponsors. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. 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 . 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 . 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 2020 - 20211 year. Douglas A. McIntyre. This page tracks and reports on important merger news in real-time . Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. 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. 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. Momentum Just Isn't Happening. and is author of the Entrepreneur Journeys book series and Vision India 2020. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. 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. Published Dec. 1, 2020 Updated Jan. 4, 2021. I think Splunk is a very lucrative acquisition target for several major players including . 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. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. 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.. *Average returns of all recommendations since inception. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . 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. You may change your billing preferences at any time in the Customer Center or call SignalFx . Will the acquisition of Splunk change things? Give . To make the world smarter, happier, and richer. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. Daily chart of Splunk stock. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. Our Standards: The Thomson Reuters Trust Principles. 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. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. VictorOps acquired by Splunk . [Related: Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series]. Splunk . Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. 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. A Division of NBCUniversal. 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. See here for a complete list of exchanges and delays. 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 positive reaction from investors has some logic to it. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. The Motley Fool owns shares of and recommends Datadog and Splunk. Read more . All quotes delayed a minimum of 15 minutes. 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. How far over that figure will determine whether the acquisition goes through or not. Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. Read focused primers on disruptive technology topics. 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. Read the Wall Street Journal report here. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. New transactions may be ongoing, let's look at the details. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. She, however, added a word of caution. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. His clients may own shares of the companies mentioned. 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 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. Oct 20, 2020 . The purchase marks one of the largest ever for the software industry. Jun 11, 2018 . Craig Galbraith. 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. Splunks stock price fell 20% over a six-month period, and the company. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. Get this delivered to your inbox, and more info about our products and services. See why organizations trust Splunk to help keep their digital systems secure and reliable. Our servers do not recognize your request. 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. The offer was . Cost basis and return based on previous market day close. Deliver the innovative and seamless experiences your customers expect. 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. 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. For every deal we do, we probably look at 10-15 companies. The Leading Resource on Next-Generation IT Infrastructure. See here for a complete list of exchanges and delays. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. It will also affirm Ciscos projected dominance in the sector in the years ahead. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. 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. Craig is a proud Husky, having graduated from the University of Washington. 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's software collects data logs and can give an enterprise added insight into operations, security, and application performance. 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. Such a deal would be the largest ever for Cisco . According to Futurum Research, the deal would be a good fitOpens a new window for both companies. The companys software can be used for managing IT systems, DevOps and security. 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. 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. Rigor's monitoring and optimization solutions complement the other Splunk offerings. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. This one was a gift for the core CRM product. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. 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. a GAAP operating loss of $780 million in 2021. Build, own, manage and support B2B and B2C web and mobile properties. My core competency is finding out people's issues in business. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. 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. Splunk Redefines the Application Performance Monitoring Market. 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 . To make the world smarter, happier, and richer. 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? Statement of changes in beneficial ownership of securities. 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. It has remained stable since at around $122 per share. Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . Splunk Application Performance Monitoring. 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.. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. 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. Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. His clients may own shares of the companies mentioned. This Is the Largest Merger of the Past 20 Years. The top source for up-to-the-minute company Merger News. 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. *Average returns of all recommendations since inception. 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. 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% . Discover what Splunk is doing to bridge the data divide. Anyone can read what you share. 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. Aug 22, 2019 . But looking under the hood to ARR and the cloud segment shows a much better growth picture. 2005 - 2023 Splunk Inc. All rights reserved. Microsoft CEO Satya Nadella has been going on a major shopping spree. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. The Motley Fool has a disclosure policy. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. 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. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. The reported deal would be the . But the advent of the cloud has shifted these needs away from legacy IT systems, and Splunk wasn't exactly ready for the change. 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. They said I didn't meet their bar for principal but P4-high. Opting out of these cookies may impact some minor site functions. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. 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. If it . Cloudmeter. 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. See why organizations around the world trust Splunk. The initial conversion price is $160 per share. 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. You may cancel your subscription at anytime by calling 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 . Transform your business in the cloud with Splunk. The Wall Street Journal reported the potential deal earlier on Friday. SEPTEMBER 2013. 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. Cisco CEO Chuck Robbins. While the revenue has been growing consistently, it has not grown at especially remarkable rates. Company Location: Mount Laurel, NJ. (if applicable) for The Wall Street Journal. SEC Filings. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. It will also affirm Ciscos projected dominance in the sector in the years ahead. SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in . 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. 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. Heritage Business Systems. All Rights Reserved. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. Dropbox is a 9.3 billion market cap company. 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. Two Days Mattered Most. That would equate to a market cap of just over $25 billion. Listen to article. 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. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. 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. You can manage your preferences at any time. Vlocity gave . 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. 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. Sep 12, 2021. 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. Learn More. 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. If you feel that youve landed on this page in error, please contact SDxCentral Support. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons Splunk experts provide clear and actionable guidance. 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. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. 3. Alex Murdaughs Trial Lasted Six Weeks. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. 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. The . Plan your migration with helpful Splunk resources. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. Management expects to be in the black for the balance of the year ahead, so that's good news. SignalFx acquired by Splunk . Accelerate value with our powerful partner ecosystem. 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.