As a subscriber, you have 10 gift articles to give each month. Read focused primers on disruptive technology topics. Splunks acquisition of BugSense enhances our product offerings so that customers can analyze machine data directly from mobile devices and correlate it with other machine-generated data to gain Operational Intelligence. 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's offer comes when Splunk is actively hunting for a new CEO following . 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. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. "We have been . We would love to hear from you! 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. Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. Sign In. Splunk Becomes A Strategic Acquisition Target For - SeekingAlpha Craig is a proud Husky, having graduated from the University of Washington. Cisco: Time To Bring Forth The Elephant Gun - SeekingAlpha According to Newman, Splunk underwent a rough phase in 2021, losing its CEO and witnessing its stock price taking a tumble, but the company still packs a punch and offers a lot of value to potential buyers. Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. All Rights Reserved. The Motley Fool has a disclosure policy. Cisco and Splunk have been in the news since last week when The Wall . 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. Vlocity gave . Cisco Systems (CSCO) Offered to Acquire Splunk (SPLK) for More Than You do not have access to www.sdxcentral.com. 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. This one was a gift for the core CRM product. 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. 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. #2: Cisco-Splunk Acquisition Rumors - Channel Futures 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. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . It's had to adapt its suite of services and the way it bills customers for this new cloud era. 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. Our Standards: The Thomson Reuters Trust Principles. The purchase marks one of the largest ever for the software industry. 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. Do you still have questions? The companys software can be used for managing IT systems, DevOps and security. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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 well off its highs and seems undervalued. Cloudmeter. Splunk Redefines the Application Performance Monitoring Market. Splunk . 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. 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's Planned $20B Splunk Acquisition: Boom or Bust? That certainly indicates the new cloud offerings are very successful with customers. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. The positive reaction from investors has some logic to it. For every deal we do, we probably look at 10-15 companies. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. 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. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. Craig Galbraith is the editorial director for Channel Futures and Channel Partners, joining the team in 2008. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. *Average returns of all recommendations since inception. Splunk . In 2020, asset management went on a shopping spree. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. splunk acquisition rumors 2020 - manoharinternational.com Transform your business in the cloud with Splunk. Splunk buys SaaS startup Omnition | ZDNET 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 . for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. 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. But there's still lots of work to be done on the cloud business. splunk acquisition rumors 2020 - bilverkstedsentralen.no 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. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . The initial conversion price is $160 per share. 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. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. All quotes delayed a minimum of 15 minutes. Top Stocks 2021: If you Only Buy One IOT Stock, It Better Be Splunk But the advent of the cloud has shifted these needs away from legacy IT systems, and Splunk wasn't exactly ready for the change. New transactions may be ongoing, let's look at the details. , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2021 Cisco CEO Chuck Robbins. I think Splunk is a very lucrative acquisition target for several major players including . 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. 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. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. SEC Filings | Splunk Inc. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. Learn how we support change for customers and communities. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. Build, own, manage and support B2B and B2C web and mobile properties. 4. TechCrunch. Initial filing by director officer or owner of more than ten percent. Learn More. 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. 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. 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. 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. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. Cloudera Agrees to $5.3B Private Equity Buyout; Stock Up 24% Dropbox (DBX) Acquisition Rumors | High Flying Investing 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. 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. Published Dec. 1, 2020 Updated Jan. 4, 2021. Discover what Splunk is doing to bridge the data divide. With the Acquisition Bode Well for Cisco? Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. Get this delivered to your inbox, and more info about our products and services. Head over to the Spiceworks Community to find answers. 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. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. 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. Making the world smarter, happier, and richer. Splunk's software has gained popularity as a tool for spotting security threats. 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. Splunk experts provide clear and actionable guidance. 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. 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 has acquired in 4 different US states, and 3 countries. Statement of changes in beneficial ownership of securities.