splunk acquisition rumors 2020 splunk acquisition rumors 2020

You may change your billing preferences at any time in the Customer Center or call Company Location: Mount Laurel, NJ. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. This cloud transformation also caused Splunk to dip into negative free cash flow territory, and it only just returned to positive free cash flow in Q1 2022 (to $66.7 million). Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. We are delighted that you'd like to resume your subscription. Learn More. 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. 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. Cisco recently made an offer for IT management and data analytics company Splunk. Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. Vlocity gave . Here are 12 other startups analysts say it could buy to fend off competitors. Craig Galbraith. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. 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. Learn More. 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. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. 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. 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. Such a deal would be the largest ever for Cisco . 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. 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. You do not have access to www.sdxcentral.com. 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. Cisco's offer comes when Splunk is actively hunting for a new CEO following . With a price to sales ratio of 5.6. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. Statement of changes in beneficial ownership of securities. See here for a complete list of exchanges and delays. 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 because of several transitions the company is undertaking at once. The positive reaction from investors has some logic to it. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. Discover what Splunk is doing to bridge the data divide. You will be charged Splunks acquisition of Plumbr enhances the auto-instrumentation, real user monitoring and deep application performance monitoring capabilities of Splunks Observability solutions. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. 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. 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. Across 2020, Splunk's cloud business represented nearly half of the company's software bookings, enabling organizations to migrate workloads and applications to the cloud, manage colossal spikes in data volume or increase visibility into cloud security risks. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. 2005 - 2023 Splunk Inc. All rights reserved. Shares of Splunk have fallen 49% since reaching a record in September 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 . 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). 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. 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 Redefines the Application Performance Monitoring Market. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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% . Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. This one was a gift for the core CRM product. These two acquisitions formed the basis . Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. Splunk experts provide clear and actionable guidance. While the revenue has been growing consistently, it has not grown at especially remarkable rates. It will also affirm Ciscos projected dominance in the sector in the years ahead. Dropbox is a 9.3 billion market cap company. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. Splunk is well off its highs and seems undervalued. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Making the world smarter, happier, and richer. The . Give . She, however, added a word of caution. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons "We have been . 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. 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. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. Plan your migration with helpful Splunk resources. I think Splunk is a very lucrative acquisition target for several major players including . The Leading Resource on Next-Generation IT Infrastructure. She can be reached at gnarcisi@thechannelcompany.com. VictorOps acquired by Splunk . This Splunk shareholder hopes management holds out for a much higher price than was reported. 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 . 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 is reportedly eyeing a Splunk acquisition. You can manage your preferences at any time. 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 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. In any case, the reporting suggested the offer was more than $20 billion. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Reporting by Jahnavi Nidumolu and Juby Babu in Bengaluru; Editing by Leslie Adler, Richard Chang and Sandra Maler, Exclusive: Nvidia's plans for sales to Huawei imperiled if U.S. tightens Huawei curbs-draft, Mexico can't match U.S. incentives for proposed Tesla battery plant, minister says, Taiwan's TSMC to recruit 6,000 engineers in 2023, US prepares new rules on investment in technology abroad- WSJ, Exclusive news, data and analytics for financial market professionals. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. 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. 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.. 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. 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. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. You may cancel your subscription at anytime by calling Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. Management expects to be in the black for the balance of the year ahead, so that's good news. Statement of changes in beneficial ownership of securities. 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. 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. While the offer from Cisco is a nice indicator of Splunk's value, as a Splunk shareholder, I really hope management rejects the offer or demands a much higher price. Cisco did not immediately respond to a request for comment, while a spokesperson for Splunk said the company did not comment on rumors or speculation. Billy Duberstein owns Amazon and Splunk. Customer Service. Announcement Date: 6/6/2019. Craig is a proud Husky, having graduated from the University of Washington. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. 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. The industry leader for online information for tax, accounting and finance professionals. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. 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. 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. Got a confidential news tip? But there's still lots of work to be done on the cloud business. Is Responsible AI a Technology Issue or a Business Issue. 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). The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. Cost basis and return based on previous market day close. 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. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. 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. Do you still have questions? According to Futurum Research, the deal would be. 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. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. 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. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. From 2008 to 2010, Mitra . Splunk Acquisition Rumors. Splunk has been in the process of shifting toward providing cloud services to customers, and said in December that almost 37% of revenue in the latest quarter was tied to cloud usage. We use cookies to ensure you get the best experience on our website. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. Get this delivered to your inbox, and more info about our products and services. The offer was . The Motley Fool owns shares of and recommends Datadog and Splunk. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. 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 (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? Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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?