Is Responsible AI a Technology Issue or a Business Issue. 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. *Average returns of all recommendations since inception. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. Cisco's offer comes when Splunk is actively hunting for a new CEO following . The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. 10 major Mergers and Acquisitions of 2020 | AlphaSense The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). That would equate to a market cap of just over $25 billion. 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. This allows me to propose solutions that help my clients. Cisco CEO Chuck Robbins. That certainly indicates the new cloud offerings are very successful with customers. 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. 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. His clients may own shares of the companies mentioned. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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. These two acquisitions formed the basis . However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. This one was a gift for the core CRM product. $ + tax 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% . . Jun 11, 2018 . A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. However my wife wants me to stay at Uber (5a, 450k, 5 yoe) since she sees the high TC and rising stock price soon after COVID . Cisco CEO On Reported Splunk Deal: 'We Are Constantly - CRN 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). 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. She can be reached at [email protected]. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org We would love to hear from you! 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 . Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. Splunk Application Performance Monitoring. To make the world smarter, happier, and richer. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. How far over that figure will determine whether the acquisition goes through or not. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. This is because of several transitions the company is undertaking at once. 2023 Cincinnati Reds Transactions | ESPN Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. 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. 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. Microsoft may acquire Mandiant, a cybersecurity firm Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . Cisco Has Discussed Deal for Software Company Splunk. Broadcom Corp. Layoffs - TheLayoff.com Douglas A. McIntyre. Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. Chuck Robbins, CEO, Cisco Systems, speaking at the World Economic Forum, Davos, Switzerland, January 21, 2020. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. With the Acquisition Bode Well for Cisco? 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. 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. 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. Alphabet certainly has the war chest for such deals. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. 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. 10 . Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Statement of changes in beneficial ownership of securities. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. The Motley Fool has a disclosure policy. 2023 CNBC LLC. Cisco is using acquisitions to help it grow . 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. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. Splunk Redefines the Application Performance Monitoring Market. Deliver the innovative and seamless experiences your customers expect. 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. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. The Company's most targeted sectors include internet software and services (50%) and software (29%).. Join Mergr and gain access to Splunk's M&A summary, the M&A summaries . Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2021 Cisco recently made an offer for IT management and data analytics company Splunk. She, however, added a word of caution. 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. The top source for up-to-the-minute company Merger News. VictorOps . We've been tracking company news on mergers and acquisitions since 1999. splunk acquisition rumors 2020 - manoharinternational.com Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. 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. 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. 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.. For every deal we do, we probably look at 10-15 companies. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. Splunk Acquisition Rumors. Frisco, Texas, United States. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. Why This Splunk Shareholder Hopes It Doesn't Sell to Cisco It has remained stable since at around $122 per share. Anyone can read what you share. Cisco makes $20 billion-plus takeover offer for Splunk - CNN 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. 11 Cloud Companies That Could Be Takeover Targets in - Business Insider So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. Invest better with The Motley Fool. 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. 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. 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. 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. 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. Acquisitions | Xerox Newsroom Announcement Date: 6/6/2019. Splunk Becomes A Strategic Acquisition Target For - SeekingAlpha 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. 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. 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. Learn how we support change for customers and communities. 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. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. Sep 12, 2021. Acquisitions - Acquisition Summary - Cisco If you feel that youve landed on this page in error, please contact SDxCentral Support. A Division of NBCUniversal. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. SEPTEMBER 2013. 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. Our Standards: The Thomson Reuters Trust Principles. 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. It will also affirm Ciscos projected dominance in the sector in the years ahead. Get this delivered to your inbox, and more info about our products and services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Precept is a leading multimedia networking software company. All quotes delayed a minimum of 15 minutes. Dropbox is a 9.3 billion market cap company. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. The offer was made recently and the companies arent currently in active talks, some of the people said. Transform your business in the cloud with Splunk. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. In any case, the reporting suggested the offer was more than $20 billion. It will also affirm Ciscos projected dominance in the sector in the years ahead. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. StreetInsider.com - Mergers News List of Splunk's 16 Acquisitions, including TwinWave And TruSTAR 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. Accelerate value with our powerful partner ecosystem. His clients may own shares of the companies mentioned. See why organizations around the world trust Splunk. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. The announcement marks a return to M&A activity for Splunk and the massive $1.05 billion deal for SignalFX in 2019. 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. But the advent of the cloud has shifted these needs away from legacy IT systems, and Splunk wasn't exactly ready for the change. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. Initial filing by director officer or owner of more than ten percent. 3. In fact, many large companies use multiple vendors for internal data analytics. The site owner may have set restrictions that prevent you from accessing the site. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. But looking under the hood to ARR and the cloud segment shows a much better growth picture. 2020 - 20211 year. 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. Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. Splunk is well off its highs and seems undervalued. Acquisitions | Splunk 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. 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. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. 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. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. Splunk to Acquire Plumbr and Rigor, Expanding the World's Most No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. 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. According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. 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. Who Will Cisco Buy Instead of Splunk? - SDxCentral If it . Splunk Mergers and Acquisitions Summary | Mergr Cisco Made $20 Billion-Plus Takeover Offer for Splunk - WSJ Cisco did not immediately respond to a request for comment. 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. 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. Already a member? Splunk has acquired in 4 different US states, and 3 countries. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. Statement of changes in beneficial ownership of securities. Customer Service. 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. Plan your migration with helpful Splunk resources. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The industry leader for online information for tax, accounting and finance professionals. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. But there's still lots of work to be done on the cloud business. 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. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. This Is the Largest Merger of the Past 20 Years. 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. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. #2: Cisco-Splunk Acquisition Rumors - Channel Futures That bidder was Sycamore Partners, a . 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.