splunk acquisition rumors 2020
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. 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. For every deal we do, we probably look at 10-15 companies. 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. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . The industry leader for online information for tax, accounting and finance professionals. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. Splunk . "We have been . Do you still have questions? Vlocity gave . 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. . Such a deal would be the largest ever for Cisco . Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. 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. 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. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. 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. They said I didn't meet their bar for principal but P4-high. Management expects to be in the black for the balance of the year ahead, so that's good news. Access timely security research and guidance. Every sell-side analyst on Wall Street has a higher price target than . Microsoft CEO Satya Nadella has been going on a major shopping spree. Customer Service. Cisco Has Discussed Deal for Software Company Splunk. Cisco and Splunk have been in the news since last week when The Wall . Save Search . Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. But looking under the hood to ARR and the cloud segment shows a much better growth picture. 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. These two acquisitions formed the basis . We are delighted that you'd like to resume your subscription. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. 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. 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. Splunk's acquisition of Rocanas technology and intellectual property plus a number of Rocanas technical employees advances Splunk's market-leading machine data platform and machine learning capabilities. 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. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Here are 12 other startups analysts say it could buy to fend off competitors. Statement of changes in beneficial ownership of securities. Read more . 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. That certainly indicates the new cloud offerings are very successful with customers. The report about said discussions comes not long after Microsoft's mammoth $70 . While the revenue has been growing consistently, it has not grown at especially remarkable rates. 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. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. See why organizations trust Splunk to help keep their digital systems secure and reliable. Then there's also the balance sheet. Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. 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. 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. . New transactions may be ongoing, let's look at the details. 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? Dropbox is a 9.3 billion market cap company. As for Cisco, Newman said the company made significant investments in cloud, software, and other higher-margin offerings, and the Splunk deal could help it achieve further growth in these bitterly-contested verticals. The people requested anonymity because the information is confidential. The report cited people familiar with the matter and did not say where the potential deal stands. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. 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 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 . 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. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. She can be reached at gnarcisi@thechannelcompany.com. 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. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Access timely security research and guidance. 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. So what should new GCP leader Thomas Kurian do? The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons We want to hear from you. Customer success starts with data success. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. 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. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. 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. Rigor's monitoring and optimization solutions complement the other Splunk offerings. 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. 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. We use cookies to ensure you get the best experience on our website. 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. Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. 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 . And over the past few years, Splunk has made a number of tuck-in acquisitions to enter into the hot observability space, which allows corporations to monitor the health of software applications, in addition to IT infrastructure. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. See here for a complete list of exchanges and delays. With the Acquisition Bode Well for Cisco? When submitting your ticket, please include the RayID detailed below for a faster resolution. BILL Holdings, Inc., formerly Bill.com Holdings, Inc., is a provider of cloud-based software that digitizes and automates financial operations for small and midsize businesses (SMBs). The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. 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. 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). Craig is a proud Husky, having graduated from the University of Washington. Build resilience to meet todays unpredictable business challenges. Customer Service. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. Splunk experts provide clear and actionable guidance. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. SEC Filings. This page tracks and reports on important merger news in real-time . Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . 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. Making the world smarter, happier, and richer. Splunk finished trading on Friday at roughly an $18 billion market cap, and after the after-hours surge, the market cap rose to $20.2 billion. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. It's had to adapt its suite of services and the way it bills customers for this new cloud era. That bidder was Sycamore Partners, a . 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. Cisco's offer comes when Splunk is actively hunting for a new CEO following . Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. Transform your business in the cloud with Splunk. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition.
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