Sep 12, 2021. It's had to adapt its suite of services and the way it bills customers for this new cloud era. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. Splunk . Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. . Splunks acquisition of VictorOps adds collaborative incident management capabilities to Splunks portfolio and creates an analytics-driven Platform of Engagement for DevOps and IT customers to better prevent and resolve incidents. They said I didn't meet their bar for principal but P4-high. Splunk's acquisition of Cloudmeter adds new capabilities to Splunk products that enable customers to analyze machine data directly from their networks and correlate it with other machine-generated data to gain insights in application and infrastructure management, IT operations, security and business analytics. 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. SEC Filings. Will the acquisition of Splunk change things? Dropbox is a 9.3 billion market cap company. 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. 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. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. Cisco is reportedly eyeing a Splunk acquisition. I think Splunk could be cheap right now after its underwhelming performance in the last year, though, and private equity firm Silver Lake seems to think so too. Splunk experts provide clear and actionable guidance. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. 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. Transform your business in the cloud with Splunk. 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. 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 on Friday after the Wall Street Journal reported that Cisco made an offer to buy the data analytics software company for over $20 billion. 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. The Motley Fool has a disclosure policy. Splunk's software has gained popularity as a tool for spotting security threats. Anyone can read what you share. These two acquisitions formed the basis . 2005 - 2023 Splunk Inc. All rights reserved. Adding to the complication is that Doug Merritt, Splunk's CEO over the past six years, resigned back in November, which sent the stock another leg down. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. The offer was . 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. Accelerate value with our powerful partner ecosystem. Sapana Maheria, practice head of Thematic Research at GlobalData, believes that if the acquisition goes through, it will bode wellOpens a new window for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. You will be charged In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. Cisco Has Discussed Deal for Software Company Splunk. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. Splunk . 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. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. 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. Give . If it . 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. 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 . Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. These are used to let you login and to and ensure site security. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. 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. People close to the company said the talks occurred recently, according to the Journal. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. The company also made four cloud-related acquisitions in 2020. 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 . 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. Invest better with The Motley Fool. 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. With the Acquisition Bode Well for Cisco? The report about said discussions comes not long after Microsoft's mammoth $70 . Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. 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 . Rigor's monitoring and optimization solutions complement the other Splunk offerings. 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. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. There's also Cisco's original move into observability with its $3.7 billion AppDynamics purchase in 2017, and its $1 billion ThousandEyes buy in 2020. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. To make the world smarter, happier, and richer. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. We base our decisions on strategic fit, cultural fit, and equally as important, the financial and evaluation fit, he said when questioned about the potential acquisition. 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 . Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. A Division of NBCUniversal. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. 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. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. Read the Wall Street Journal report here. That bidder was Sycamore Partners, a . According to Futurum Research, the deal would be. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. 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 Acquisition Rumors. 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. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. 2020 - 20211 year. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Splunk CEO on the data firm's new initiative focused on government cybersecurity, Jim Cramer's Investing Club meeting Friday: Costco, Eli Lilly, Apple, Goldman Sachs upgrades this internet of things stock which it sees surging 60%, Top 10 things the Club is watching in the stock market Friday. 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. Customer success starts with data success. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Given that Silver Lake has a seat on the board of directors, it would probably be difficult for it to vote for any acquisition below that $160 price. 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. Already a member? The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. 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. The data log management and monitoring software leader has also trailed behind its smaller higher-growth and cloud-native peers as it adapts its business to more modern customer needs. As a subscriber, you have 10 gift articles to give each month. Build resilience to meet todays unpredictable business challenges. Customer Service. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. splunk acquisition rumors 2020; joaquin niemann sponsors. Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. 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. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. For every deal we do, we probably look at 10-15 companies. 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. Cisco is using acquisitions to help it grow . Deliver the innovative and seamless experiences your customers expect. Th ecompany serves four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others. Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company announcedOpens a new window a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. Deliver the innovative and seamless experiences your customers expect. 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 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. 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? 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. Cisco did not immediately respond to a request for comment. This includes computing devices, control systems, sensors, or anything else connected . Is this the software value stock for you too? (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 . That compares with a $114 share price at the end of trading Friday and $127.45 after hours. *Average returns of all recommendations since inception. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. Data is a real-time snapshot *Data is delayed at least 15 minutes. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . 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. 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). , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. But looking under the hood to ARR and the cloud segment shows a much better growth picture. See why organizations around the world trust Splunk. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. 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. Ciscos Bold Move to Boost Cybersecurity M&As in 2022, Sapana Maheria, practice head of Thematic Research at GlobalData, believes that if the acquisition goes through, it will. 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. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities.
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