With the Acquisition Bode Well for Cisco? You do not have access to www.sdxcentral.com. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. Gina Narcisi is a senior editor covering the networking and telecom markets for CRN.com. According to Futurum Research, the deal would be a good fitOpens a new window for both companies. 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. So, headline revenue numbers may be misleading, giving the impression Splunk is lagging behind cloud-native upstarts such as Dynatraceand Datadog. 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 . Splunk Application Performance Monitoring, EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. Discover what Splunk is doing to bridge the data divide. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. 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. . Splunk has acquired 14 companies, including 8 in the last 5 years.. Splunk's largest acquisition to date was in 2019, when it acquired SignalFx for $1.1B. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. 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. Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company announcedOpens a new window a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. 4. Save Search . Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. 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. 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. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. See why organizations trust Splunk to help keep their digital systems secure and reliable. According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. . SignalFx acquired by Splunk . Splunk (SPLK -1.40%) has been a severe underperformer in the last year. A statement of beneficial ownership of common stock by certain persons. We use cookies to ensure you get the best experience on our website. She can be reached at gnarcisi@thechannelcompany.com. 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. 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. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . 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. Aug 22, 2019 . 2023 CNBC LLC. Heritage Business Systems. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. People close to the company said the talks occurred recently, according to the Journal. See why organizations around the world trust Splunk. Learn More. 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. Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. 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. 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. Splunk Inc. is an American software company based in San Francisco, California, that produces software for searching, monitoring, and analyzing machine-generated data via a Web-style interface. The Motley Fool has a disclosure policy. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. 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. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. Directly supervise a team of 15 global staff consisting of product, delivery . 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. 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. This Splunk shareholder hopes management holds out for a much higher price than was reported. Then there's also the balance sheet. Splunks acquisition of Metafor expands our capabilities in IT operations and security incident and event management (SIEM) by adding machine learning and anomaly detection to our solutions, which helps customers detect unknown and malicious threats. Two Days Mattered Most. Head over to the Spiceworks Community to find answers. New transactions may be ongoing, let's look at the details. As a subscriber, you have 10 gift articles to give each month. Splunk . And Kurian an Oracle veteran knows how to . 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. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. Every sell-side analyst on Wall Street has a higher price target than . Plan your migration with helpful Splunk resources. Splunk finished trading on Friday at roughly an $18 billion market cap, and after the after-hours surge, the market cap rose to $20.2 billion. 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% . Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Accelerate value with our powerful partner ecosystem. Jun 11, 2018 . 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. We want to hear from you. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. Splunks stock price fell 20% over a six-month period, and the company. 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. 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. 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. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. 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. Will Townsend. Splunk shares rose as much as 14% in extended trading on Friday after the Wall Street Journal reported that Cisco made an offer to buy the data analytics software company for over $20 billion. Splunks 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. The industry leader for online information for tax, accounting and finance professionals. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. In fact, many large companies use multiple vendors for internal data analytics. It will also affirm Ciscos projected dominance in the sector in the years ahead. 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 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. splunk acquisition rumors 2020; joaquin niemann sponsors. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. Statement of changes in beneficial ownership of securities. Splunk's software collects, analyzes and visualizes real-time and historical machine data from any source. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. It's had to adapt its suite of services and the way it bills customers for this new cloud era. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. A Division of NBCUniversal. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. That would equate to a market cap of just over $25 billion. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. 3. Invest better with The Motley Fool. 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 . The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . 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. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. The site owner may have set restrictions that prevent you from accessing the site. These two acquisitions formed the basis . Before that, he spent more than 11 years as an anchor, reporter and managing editor in television newsrooms in North Dakota and Washington state. The top source for up-to-the-minute company Merger News. Deliver the innovative and seamless experiences your customers expect. It's not that I am clearvoyant, it is just my nature to keep asking questions, truly listen to the answers and connect the dots until I have a clear understanding. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Get this delivered to your inbox, and more info about our products and services. The Motley Fool owns shares of and recommends Datadog and Splunk. for both companies. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. Invest better with The Motley Fool. Learn how we support change for customers and communities. Statement of changes in beneficial ownership of securities. Ciscos market capitalization is $227 billion. 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. 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. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. See why organizations around the world trust Splunk. 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. My core competency is finding out people's issues in business. 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. The company also made four cloud-related acquisitions in 2020.