If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. Will Townsend. But there's still lots of work to be done on the cloud business. Billy Duberstein owns Amazon and Splunk. 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. 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 . Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . Two Days Mattered Most. Splunk is well off its highs and seems undervalued. Without these cookies, our Services won't work properly or won't be able to provide many features and functionality. 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. Ciscos market capitalization is $227 billion. Deeply embedded in the largest companies and their technology systems, it would be a big undertaking to replace Splunk with a competitor. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. Shares of Splunk have fallen 49% since reaching a record in September 2020. 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. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. These are used to let you login and to and ensure site security. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. 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. 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. 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. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. With the Acquisition Bode Well for Cisco? 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. 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. You do not have access to www.sdxcentral.com. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. 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. Build resilience to meet todays unpredictable business challenges. 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. The offer was . Transform your business in the cloud with Splunk. Will the acquisition of Splunk change things? Alex Murdaughs Trial Lasted Six Weeks. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. Sign up for free newsletters and get more CNBC delivered to your inbox. Splunk named after spelunking, the sport of cave exploring mines data for insights, including security threats, a business that grew in importance as the coronavirus pandemic quickly forced many workers online. A statement of beneficial ownership of common stock by certain persons. 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. The site owner may have set restrictions that prevent you from accessing the site. 2005 - 2023 Splunk Inc. All rights reserved. *Average returns of all recommendations since inception. 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. 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 . Precept is a leading multimedia networking software company. 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. A Division of NBCUniversal. That bidder was Sycamore Partners, a . Is this the software value stock for you too? Rigor's monitoring and optimization solutions complement the other Splunk offerings. In fact, many large companies use multiple vendors for internal data analytics. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. Access timely security research and guidance. 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. and is author of the Entrepreneur Journeys book series and Vision India 2020. Every sell-side analyst on Wall Street has a higher price target than Friday's close, with the lowest at $120 per share, and the highest at $225 per share, with the average at $162. 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. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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 . Read more . Customer Service. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. Cost basis and return based on previous market day close. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. 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. The Leading Resource on Next-Generation IT Infrastructure. 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. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. Splunk experts provide clear and actionable guidance. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Initial filing by director officer or owner of more than ten percent. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. Splunk Acquisition Rumors. 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. Jun 11, 2018 . According to a report by GlobalData, 24,689 deals were announced worldwide in H1 of 2020, which marks a 15% decline YoY. Transform your business in the cloud with Splunk. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. 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. 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. Access timely security research and guidance. Customer success starts with data success. The industry leader for online information for tax, accounting and finance professionals. Plan your migration with helpful Splunk resources. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. Aug 22, 2019 . 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. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. Initial filing by director officer or owner of more than ten percent. Alex Murdaugh Receives Life Sentence: What Happens Now? 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. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. 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. Vlocity gave . 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 allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . Splunk has acquired in 4 different US states, and 3 countries. Cisco and Splunk have been in the news since last week when The Wall . SignalFx acquired by Splunk . In any case, the reporting suggested the offer was more than $20 billion. The company also made four cloud-related acquisitions in 2020. Our servers do not recognize your request. A data platform built for expansive data access, powerful analytics and automation, Cloud-powered insights for petabyte-scale data analytics across the hybrid cloud, Search, analysis and visualization for actionable insights from all of your data, Analytics-driven SIEM to quickly detect and respond to threats, Security orchestration, automation and response to supercharge your SOC, Instant visibility and accurate alerts for improved hybrid cloud performance, Full-fidelity tracing and always-on profiling to enhance app performance, AIOps, incident intelligence and full visibility to ensure service performance. 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.