splunk acquisition rumors 2020

Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. The Motley Fool has a disclosure policy. Apr 16, 2021 1:02 PM EDT. 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. 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. 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. Daily chart of Splunk stock. Plan your migration with helpful Splunk resources. Though it's been beat down in the last year, Splunk operates as the leader in a growing industry and could be a real long-term value for those who can patiently wait out the inevitable bumps in the road. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. Shares of Splunk have fallen 49% since reaching a record in September 2020. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. Splunk said it does not comment on rumors or speculation. During the years prior going back to 2017, Cisco closed between . Momentum Just Isn't Happening. Customer Service. You may cancel your subscription at anytime by calling 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. The Leading Resource on Next-Generation IT Infrastructure. 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 . SignalFx acquired by Splunk . Here are 12 other startups analysts say it could buy to fend off competitors. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Cloudmeter. Our Standards: The Thomson Reuters Trust Principles. 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. The positive reaction from investors has some logic to it. Splunk Application Performance Monitoring. Cisco and Splunk have been in the news since last week when The Wall . Learn how we support change for customers and communities. 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. 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. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. Invest better with The Motley Fool. and is author of the Entrepreneur Journeys book series and Vision India 2020. 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 Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. 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. New transactions may be ongoing, let's look at the details. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. Such a deal would be the largest ever for Cisco . According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. How far over that figure will determine whether the acquisition goes through or not. View our Privacy Policy for more information. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org 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. Listen to article. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Do you still have questions? Initial filing by director officer or owner of more than ten percent. All quotes delayed a minimum of 15 minutes. 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. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. In any case, the reporting suggested the offer was more than $20 billion. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. 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). Alex Murdaugh Receives Life Sentence: What Happens Now? 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. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. 2005 - 2023 Splunk Inc. All rights reserved. 2020 - 20211 year. 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. SignalFx . Billy Duberstein owns Amazon and Splunk. Splunk Redefines the Application Performance Monitoring Market. Give . . Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. These rankings reflect its credentials and dominance in the space. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. Customer success starts with data success. The site owner may have set restrictions that prevent you from accessing the site. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. . With the Acquisition Bode Well for Cisco? A spoksperson for Splunk cited its policy not to comment on rumors or speculation. A statement of beneficial ownership of common stock by certain persons. The report cited people familiar with the matter and did not say where the potential deal stands. 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. 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. This page tracks and reports on important merger news in real-time . Frisco, Texas, United States. 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. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). Build, own, manage and support B2B and B2C web and mobile properties. 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. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. [Related: Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series]. Is Responsible AI a Technology Issue or a Business Issue. Company Location: Mount Laurel, NJ. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. Ciscos market capitalization is $227 billion. 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. 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. Invest better with The Motley Fool. We've been tracking company news on mergers and acquisitions since 1999. Discover what Splunk is doing to bridge the data divide. Dropbox is a 9.3 billion market cap company. 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. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. Making the world smarter, happier, and richer. The purchase marks one of the largest ever for the software industry. Access timely security research and guidance. VictorOps . 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. Learn how we support change for customers and communities. Accelerate value with our powerful partner ecosystem. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. 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. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. Build resilience to meet todays unpredictable business challenges. You do not have access to www.sdxcentral.com. This one was a gift for the core CRM product. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. Heritage Business Systems. 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. (if applicable) for The Wall Street Journal. Microsoft said last month that it was planning to acquire the video game company Activision Blizzard for nearly $70 billion, and Salesforce acquired the workplace software company Slack last year for $27.7 billion. Splunk would be a perfect target for its ambitions, and would be Cisco's biggest acquisition ever, about triple (or more) the $7 billion acquisition of Scientific Atlanta back in 2005. Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. You will be notified in advance of any changes in rate or terms. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. 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, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. 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. "We have been . 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. The top source for up-to-the-minute company Merger News. Get this delivered to your inbox, and more info about our products and services. 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. IDC forecasts data creation and replication will grow at a 23% annualized growth rate from 2020 to 2025, and that acts as a powerful tailwind for the industry. Sign up for free newsletters and get more CNBC delivered to your inbox. See here for a complete list of exchanges and delays. 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). Learn More. You can manage your preferences at any time. Customer success starts with data success. 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 June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. Will the acquisition of Splunk change things? Statement of changes in beneficial ownership of securities. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. All Rights Reserved. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. You may change your billing preferences at any time in the Customer Center or call Splunks acquisition of Plumbr enhances the auto-instrumentation, real user monitoring and deep application performance monitoring capabilities of Splunks Observability solutions. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . With dominant position in multiple on-premise markets, Ciscos valuation has been held back by more gradual moves toward the cloud and the revenue transition from opex vs. capex focused IT. Still, it does not have currently have a . 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. His clients may own shares of the companies mentioned. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Sep 12, 2021. San Jose, Calif.-based Cisco did not respond to CRNs request for comment on the alleged deal by publication time. Splunk has acquired in 4 different US states, and 3 countries. 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? Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. 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. To make the world smarter, happier, and richer. Rigor's monitoring and optimization solutions complement the other Splunk offerings. Press Release: 6/6/2019 Xerox Acquires Two New Dealers to Expand Presence in the Small-To-Medium Sized Business Market. That would equate to a market cap of just over $25 billion. For every deal we do, we probably look at 10-15 companies. 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. 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 . It has remained stable since at around $122 per share. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. 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. Opinion: Yes, Theres a Housing Crisis. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. 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. 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. 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. 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. 2005 - 2023 Splunk Inc. All rights reserved. Microsoft CEO Satya Nadella has been going on a major shopping spree. 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. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. 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. The industry leader for online information for tax, accounting and finance professionals. Douglas A. McIntyre. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. 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. (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 . 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. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . Aug 22, 2019 . Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons.

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