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. 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. We've been tracking company news on mergers and acquisitions since 1999. Splunk Acquisition Rumors. Precept is a leading multimedia networking software company. "We have been . Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. 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. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. 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. SDxCentral employs cookies to improve your experience on our site, to analyze traffic and performance, and to serve personalized content and advertising relevant to your professional interests. 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. L Brands' plan was to spin its Bath & Body Works brand off into a stand-alone company and sell its lagging Victoria's Secret/Pink brands to the highest bidder. Opting out of these cookies may impact some minor site functions. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. 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. Douglas A. McIntyre. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. Learn how we support change for customers and communities. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Datadog and Splunk. Splunk . The Motley Fool has a disclosure policy. How far over that figure will determine whether the acquisition goes through or not. To make the world smarter, happier, and richer. 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. You may cancel your subscription at anytime by calling According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . Craig is a proud Husky, having graduated from the University of Washington. Customer Service. View our Privacy Policy for more information. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Learn More. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. Customer Service. Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. Alex Murdaughs Trial Lasted Six Weeks. Splunk is well off its highs and seems undervalued. 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. 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. San Jose, Calif.-based Cisco did not respond to CRNs request for comment on the alleged deal by publication time. The Leading Resource on Next-Generation IT Infrastructure. Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . If you feel that youve landed on this page in error, please contact SDxCentral Support. 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. 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. 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 . For every deal we do, we probably look at 10-15 companies. You will be notified in advance of any changes in rate or terms. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. That would equate to a market cap of just over $25 billion. Splunks stock was up 10.47 percent to $126.50 in after-hours trading Friday after the news was published. 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. Management expects to be in the black for the balance of the year ahead, so that's good news. 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 . 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 . We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. 2005 - 2023 Splunk Inc. All rights reserved. for both companies. Head over to the Spiceworks Community to find answers. You will be charged Our Standards: The Thomson Reuters Trust Principles. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. Alex Murdaugh Receives Life Sentence: What Happens Now? Making the world smarter, happier, and richer. Statement of changes in beneficial ownership of securities. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. 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. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. These rankings reflect its credentials and dominance in the space. I think Splunk is a very lucrative acquisition target for several major players including . Build, own, manage and support B2B and B2C web and mobile properties. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. Do you still have questions? a GAAP operating loss of $780 million in 2021. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. 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. 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. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. 4. This page tracks and reports on important merger news in real-time . We would love to hear from you! Splunk (SPLK -1.40%) has been a severe underperformer in the last year. Aug 22, 2019 . . A Division of NBCUniversal. Learn how we support change for customers and communities. Splunk is currently unprofitable, and the stock has been unable to bounce back from last year's challenges with this interest rate cloud hanging over it. 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. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. All quotes delayed a minimum of 15 minutes. The report cited people familiar with the matter and did not say where the potential deal stands. Our servers do not recognize your request. 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 . However, an ability to package Splunks leading Security analytics and ITOM solutions with other security offerings, further optimize distribution and pricing, could present very interesting potential M&A synergies for Cisco, Marshall added. In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. 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. 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 has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. 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. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Accelerate value with our powerful partner ecosystem. Cisco was built on its leading position in enterprise hardware, but has made a big strategic effort to buy its way into the more stable software space. As a shareholder, I'm certainly hoping Splunk holds out for a higher price. 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. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. Read the Wall Street Journal report here. It's had to adapt its suite of services and the way it bills customers for this new cloud era. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Splunks stock price fell 20% over a six-month period, and the company reportedOpens a new window a GAAP operating loss of $780 million in 2021. The . Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. Microsoft CEO Satya Nadella has been going on a major shopping spree. You may change your billing preferences at any time in the Customer Center or call 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. 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. 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. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Cisco is using acquisitions to help it grow . The site owner may have set restrictions that prevent you from accessing the site. (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 . 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. 5. This Is the Largest Merger of the Past 20 Years. The people requested anonymity because the information is confidential. Directly supervise a team of 15 global staff consisting of product, delivery . Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. Every sell-side analyst on Wall Street has a higher price target than . Splunk Application Performance Monitoring. The top source for up-to-the-minute company Merger News. Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. 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. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. The offer was . 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. 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. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. And Kurian an Oracle veteran knows how to . Splunk experts provide clear and actionable guidance. Heritage Business Systems. Customer success starts with data success. But there's still lots of work to be done on the cloud business. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. 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. SEPTEMBER 2013. We use cookies to ensure you get the best experience on our website. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. In 2020, asset management went on a shopping spree. Will Townsend. It will also affirm Ciscos projected dominance in the sector in the years ahead. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. When submitting your ticket, please include the RayID detailed below for a faster resolution. splunk acquisition rumors 2020; joaquin niemann sponsors. The report about said discussions comes not long after Microsoft's mammoth $70 . According to Futurum Research, the deal would be. Rigor's monitoring and optimization solutions complement the other Splunk offerings. Splunk experts provide clear and actionable guidance. 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. This is because of several transitions the company is undertaking at once. 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). 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? 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. According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. But the advent of the cloud has shifted these needs away from legacy IT systems, and Splunk wasn't exactly ready for the change. 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