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. 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. 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. 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 . Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. You may cancel your subscription at anytime by calling 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. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. 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. 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. 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. Cisco did not immediately respond to a request for comment. 2023 CNBC LLC. The initial conversion price is $160 per share. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . Splunk . About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR). But there's still lots of work to be done on the cloud business. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. Customer Service. For every deal we do, we probably look at 10-15 companies. 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). for both companies. Save Search . Customer Service. A challenge for Cisco in its transformation is the heft of the current $50 billion revenue base focused primarily on networking equipment, making it mathematically difficult to find the subscription revenues to transform the business, she said. Will Townsend. Discover what Splunk is doing to bridge the data divide. To make the world smarter, happier, and richer. Cisco was built on its leading position in enterprise hardware, but has made a big strategic effort to buy its way into the more stable software space. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. Listen to article. But looking under the hood to ARR and the cloud segment shows a much better growth picture. It's had to adapt its suite of services and the way it bills customers for this new cloud era. Here are 12 other startups analysts say it could buy to fend off competitors. Alphabet certainly has the war chest for such deals. 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. June 5. splunk acquisition rumors 2020 . Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. 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 Redefines the Application Performance Monitoring Market. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. The offer was made recently and the companies are not in active talks, the newspaper said, citing some of the sources. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. Microsoft CEO Satya Nadella has been going on a major shopping spree. Aug 22, 2019 . The company also made four cloud-related acquisitions in 2020. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. Its chief executive, Chuck Robbins, told analysts in December that Cisco would continue to look for acquisitions in security. Momentum Just Isn't Happening. The top source for up-to-the-minute company Merger News. The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. Splunk jumped up 16 percent post-market on reports of the takeover bid. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. Cloud ARR was only just over one-third of total ARR in the last quarter, so there will likely be more variability in overall growth and profitability in the next couple of years as more customers make the switch. Deliver the innovative and seamless experiences your customers expect. 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. 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. Splunk experts provide clear and actionable guidance. Microsoft's acquisition of B's parent company for $7.5 billion in March of this year shocked the gaming industry and raised the level of XBOX's camp. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons Initial filing by director officer or owner of more than ten percent. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. 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. 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. "We have been . 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. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. Founded in 2003, the software solutions provider has a market capitalisation of $18.2 billion, according to Refinitiv Eikon data. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Investment advisory firm The Motley Fool said the acquisition would make a lot of strategic sense for Cisco, which has aimed to move beyond its historical emphasis on hardware to incorporate more software and services offerings.. a GAAP operating loss of $780 million in 2021. The companys software can be used for managing IT systems, DevOps and security. 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. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. Cisco did not immediately respond to a request for comment, while a spokesperson for Splunk said the company did not comment on rumors or speculation. Cisco Systems (NASDAQ: CSCO) offered to acquire Splunk (NASDAQ: SPLK) for more than $20 billion, the Wall Street Journal reported citing people familiar with the matter. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. Customer success starts with data success. 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. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. 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. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Splunk is well off its highs and seems undervalued. See why organizations trust Splunk to help keep their digital systems secure and reliable. Cisco's offer comes when Splunk is actively hunting for a new CEO following . 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 stock was up 10.47 percent to $126.50 in after-hours trading Friday after the news was published. She can be reached at gnarcisi@thechannelcompany.com. BILL Holdings, Inc., formerly Bill.com Holdings, Inc., is a provider of cloud-based software that digitizes and automates financial operations for small and midsize businesses (SMBs). Heritage Business Systems. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company.
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