Customer success starts with data success. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. Trading Splunk Stock as M&A Buyers Circle - TheStreet Discover what Splunk is doing to bridge the data divide. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Total revenue in Q1 2022 was up just 16% from a year ago to $502 million, a decent rally after overall revenue fell 5% last year. 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. Opting out of these cookies may impact some minor site functions. 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. Our servers do not recognize your request. If you feel that youve landed on this page in error, please contact SDxCentral Support. Then there's also the balance sheet. Head over to the Spiceworks Community to find answers. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. Precept is a leading multimedia networking software company. Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. Cisco Systems (CSCO) Offered to Acquire Splunk (SPLK) for More Than My core competency is finding out people's issues in business. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons These are the highest quality stocks in the S&P 500 that could win in this volatile market, This growth ETF is leaving one of its top competitors in the dust. SEC Filings | Splunk Inc. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. 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. 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. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. 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. *Average returns of all recommendations since inception. Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. In any case, the reporting suggested the offer was more than $20 billion. 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. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Ciscos market capitalization is $227 billion. Cisco CEO Chuck Robbins. 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. Splunk Stock Lacks Momentum amid Insider Selling | Nasdaq You can manage your preferences at any time. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. Nik Mithani - Oklahoma State University - LinkedIn Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. 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. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. Accelerate value with our powerful partner ecosystem. 10 . You may change your billing preferences at any time in the Customer Center or call Is Responsible AI a Technology Issue or a Business Issue. SignalFx . That would equate to a market cap of just over $25 billion. According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. Company Location: Mount Laurel, NJ. Build resilience to meet todays unpredictable business challenges. 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 . Rigor Acquisition by Splunk - David Cummings on Startups Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. VictorOps . $ + tax Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. 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. Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . During the years prior going back to 2017, Cisco closed between . In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. Cisco Pivots to Software and Posts Solid Q2 Results - Futurum Research 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. 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. Splunk Mergers and Acquisitions Summary | Mergr However, cash on hand and positive free cash flow will fund that new $1 billion share repurchase program, which should help boost earnings per share over time. Sep 12, 2021. Every sell-side analyst on Wall Street has a higher price target than . BILL HOLDINGS, INC. : Shareholders Board Members Managers and Company At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. 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. Read more . To make the world smarter, happier, and richer. 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. People close to the company said the talks occurred recently, according to the Journal. Is this the software value stock for you too? . Mobile World Congress (MWC) is back in a big way and delivered the 5Goods (my clever play on words) on many . Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . Network gear maker Cisco Systems Inc has made a takeover offer worth more than $20 billion for software maker Splunk Inc , the Wall Street Journal reported on Friday, citing people familiar with . Splunk Application Performance Monitoring. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2021 It appears Splunk is back in growth mode, and recent acquisitions and the launch of its new Observability Suite and Security Cloud offerings could help sustain this return to growth. Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. 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. Read focused primers on disruptive technology topics. SEC Filings. The report about said discussions comes not long after Microsoft's mammoth $70 . Apr 16, 2021 1:02 PM EDT. This allows me to propose solutions that help my clients. San Jose, Calif.-based Cisco did not respond to CRNs request for comment on the alleged deal by publication time. Cisco's Planned $20B Splunk Acquisition: Boom or Bust? Alphabet certainly has the war chest for such deals. New transactions may be ongoing, let's look at the details. It's had to adapt its suite of services and the way it bills customers for this new cloud era. 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. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. The . 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. Learn how we support change for customers and communities. Build, own, manage and support B2B and B2C web and mobile properties. Google Cloud Acquisition Targets: ServiceNow, Atlassian, Splunk? Pure I think Splunk could be cheap right now after its underwhelming performance in the last year, though, and private equity firm Silver Lake seems to think so too. 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. Deliver the innovative and seamless experiences your customers expect. 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. The purchase marks one of the largest ever for the software industry. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. Statement of changes in beneficial ownership of securities. TechCrunch. The positive reaction from investors has some logic to it. Splunk Drops as CTO Departure Sparks Downgrades - TheStreet Still, it does not have currently have a . Splunk is a developer of software used to collect, index, search and analyze machine-generated data from websites, applications, sensors and devices. Access timely security research and guidance. Heritage Business Systems. Splunk buys SaaS startup Omnition | ZDNET The initial conversion price is $160 per share. Not surprisingly, when asked about the rumored acquisition during the earnings call, Robbins was coy, refusing to comment on the rumors and providing no hints in either his comments or . He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. Craig Galbraith. Splunk Redefines the Application Performance Monitoring Market. With a price to sales ratio of 5.6. Cloudera Agrees to $5.3B Private Equity Buyout; Stock Up 24% Cisco CEO On Reported Splunk Deal: 'We Are Constantly - CRN 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. Cisco Made $20 Billion-Plus Takeover Offer for Splunk - WSJ The Wall Street Journal reported the potential deal earlier on Friday. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. 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. 2005 - 2023 Splunk Inc. All rights reserved. *Average returns of all recommendations since inception. If it . Splunk Acquisition Rumors. June 5. splunk acquisition rumors 2020 . 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. Already a member? Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. The Motley Fool has a disclosure policy. 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. The people requested anonymity because the information is confidential. Cisco is using acquisitions to help it grow . Momentum Just Isn't Happening. 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. This Is the Largest Merger of the Past 20 Years. Save Search . Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The industry leader for online information for tax, accounting and finance professionals. Anyone can read what you share. 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. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. But there's still lots of work to be done on the cloud business. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. 2005 - 2023 Splunk Inc. All rights reserved. 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. 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? Cisco is reportedly eyeing a Splunk acquisition. Broadcom Corp. Layoffs - TheLayoff.com Frisco, Texas, United States. 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. They said I didn't meet their bar for principal but P4-high. Accelerate value with our powerful partner ecosystem. 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. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . See here for a complete list of exchanges and delays. Billy Duberstein owns Amazon and Splunk. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. While the revenue has been growing consistently, it has not grown at especially remarkable rates.