The Silicon Valley-based tech investor recently plopped $1 billion down on Splunk, a significant cash infusion given Splunk's current enterprise value sits at $23 billion. 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. Douglas A. McIntyre. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. Dropbox is a 9.3 billion market cap company. 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. There's also Cisco's original move into observability with its $3.7 billion AppDynamics purchase in 2017, and its $1 billion ThousandEyes buy in 2020. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. Pundits speculate that Google parent Alphabet could acquire ServiceNow, Atlassian, Splunk or perhaps Zayo.. Is Responsible AI a Technology Issue or a Business Issue. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. *Average returns of all recommendations since inception. Is this the software value stock for you too? Anyone can read what you share. 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. Splunks acquisition of VictorOps adds collaborative incident management capabilities to Splunks portfolio and creates an analytics-driven Platform of Engagement for DevOps and IT customers to better prevent and resolve incidents. IT systems management, cybersecurity, and observability company Splunk (SPLK -1.40%) surged more than 11% late Friday, after The Wall Street Journal reported tech giant Cisco Systems (CSCO 1.54%) had made an offer to buy the company for more than $20 billion. 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. 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. splunk acquisition rumors 2020; joaquin niemann sponsors. 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. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. Announcement Date: 6/6/2019. This is because of several transitions the company is undertaking at once. 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. Cisco is reportedly eyeing a Splunk acquisition. His clients may own shares of the companies mentioned. Th ecompany serves four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others. Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. From 2008 to 2010, Mitra . Discover what Splunk is doing to bridge the data divide. The Motley Fool has a disclosure policy. 2023 CNBC LLC. 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. 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. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. Cisco did not immediately respond to a request for comment. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. In 2020, asset management went on a shopping spree. 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. 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. 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. 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. Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. Senior Assistant Editor, Spiceworks Ziff Davis, Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company. With the Acquisition Bode Well for Cisco? At the peak of its after-hours move, Splunk was valued at more than $20 billion, up from $18.2 billion at the close of trading. Company Location: Mount Laurel, NJ. According to Futurum Research, the deal would be. 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% . SignalFx . The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. See why organizations around the world trust Splunk. According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. VictorOps . Discover what Splunk is doing to bridge the data divide. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Now there are reports Microsoft is looking to buy Mandiant, the cybersecurity software firm formerly known as FireEye that is . Invest better with The Motley Fool. This Splunk shareholder hopes management holds out for a much higher price than was reported. Microsoft CEO Satya Nadella has been going on a major shopping spree. Splunks acquisition of KryptonCloud expands Splunks ability to innovate for IoT use cases with our market-leading machine data platform. Oct 20, 2020 . Plan your migration with helpful Splunk resources. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. The company also made four cloud-related acquisitions in 2020. These rankings reflect its credentials and dominance in the space. The Leading Resource on Next-Generation IT Infrastructure. And Kurian an Oracle veteran knows how to . Learn More. The stock fell 18% on Nov. 15, after the company said CEO Doug Merritt, who had been running the company for six years, would be stepping down immediately. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. Access timely security research and guidance. 10 . In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. 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. It will also affirm Ciscos projected dominance in the sector in the years ahead. SAN FRANCISCO Salesforce said on Tuesday that it would buy the workplace software company Slack for $27.7 billion in cash and stock, the latest in . 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. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. Invest better with The Motley Fool. These are used to let you login and to and ensure site security. This includes computing devices, control systems, sensors, or anything else connected . Splunks stock was up 10.47 percent to $126.50 in after-hours trading Friday after the news was published. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. The acquisition complements Cisco's strategy of developing networking solutions that integrate voice, data and video traffic. We are constantly evaluating potential opportunities. The notes only bear an interest rate of 0.75%, but convert to equity at $160 per share. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. Our servers do not recognize your request. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. Directly supervise a team of 15 global staff consisting of product, delivery . Got a confidential news tip? Learn More. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. 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. SEPTEMBER 2013. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The Omnition purchase follows Splunk's announcement last month that it planned to acquire cloud monitoring company SingalFx for $1.05 billion -- its largest acquisition ever. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. 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 . 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. Splunks acquisition of SignalFx adds real-time monitoring and metrics for cloud infrastructure, microservices and applications, enhancing Splunks position as a leader in observability and APM. 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. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. Get this delivered to your inbox, and more info about our products and services. Cost basis and return based on previous market day close. Craig Galbraith. 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. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. 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? The positive reaction from investors has some logic to it. Splunk experts provide clear and actionable guidance. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. Build resilience to meet todays unpredictable business challenges. Build, own, manage and support B2B and B2C web and mobile properties. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. 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. But the advent of the cloud has shifted these needs away from legacy IT systems, and Splunk wasn't exactly ready for the change. Vlocity gave . 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. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. During the years prior going back to 2017, Cisco closed between .