Cisco's offer comes when Splunk is actively hunting for a new CEO following . 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. During the years prior going back to 2017, Cisco closed between . Invest better with The Motley Fool. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. Access timely security research and guidance. Ciscos Bold Move to Boost Cybersecurity M&As in 2022, Sapana Maheria, practice head of Thematic Research at GlobalData, believes that if the acquisition goes through, it will. 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. Jun 11, 2018 . Statement of changes in beneficial ownership of securities. Build, own, manage and support B2B and B2C web and mobile properties. Is Responsible AI a Technology Issue or a Business Issue. We would love to hear from you! When submitting your ticket, please include the RayID detailed below for a faster resolution. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. 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. This Splunk shareholder hopes management holds out for a much higher price than was reported. 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. Statement of changes in beneficial ownership of securities. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. . 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. Splunks acquisition of Caspida adds Behavioral Analytics to Splunks security portfolio and expands our ability to address a broader set of security challenges faced by customers including advanced threats, insider threats and fraud. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. Build resilience to meet todays unpredictable business challenges. 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. Aug 22, 2019 . 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. Daily chart of Splunk stock. VictorOps acquired by Splunk . June 5. splunk acquisition rumors 2020 . Cisco did not immediately respond to a request for comment. In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition. 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. See why organizations around the world trust Splunk. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. 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. 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. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. The companys software can be used for managing IT systems, DevOps and security. 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. All quotes delayed a minimum of 15 minutes. 2005 - 2023 Splunk Inc. All rights reserved. Splunk Application Performance Monitoring. Splunk jumped up 16 percent post-market on reports of the takeover bid. The reported deal would be the . Listen to article. 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. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. In any case, the reporting suggested the offer was more than $20 billion. Splunk experts provide clear and actionable guidance. 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. 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. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. 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). Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . Discover what Splunk is doing to bridge the data divide. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . acquisition-related adjustments, amortization of intangible assets and . The reported deal would be the largest price tag for Cisco, which is no stranger to technology acquisitions. It's pretty likely Silver Lake didn't invest in Splunk to make 0.75%, but rather to make big money on the conversion. Cisco Systems, Inc. signed a definitive agreement to acquire privately-held Precept Software, Inc. of Palo Alto, California. Will Townsend. Read focused primers on disruptive technology topics. 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. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. All Rights Reserved. However, it appears Splunk has a fairly deep bench, especially with two big new hires from Amazon, so it should be able to find a suitable replacement either internally or externally. Splunk's acquisition of TwinWave extends our security leadership and adds capabilities to empower the security analyst with cloud-native, automated threat analysis for phishing and malware. 2023 CNBC LLC. We want to hear from you. 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. These are used to let you login and to and ensure site security. 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. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. The top source for up-to-the-minute company Merger News. Alex Murdaugh Receives Life Sentence: What Happens Now? 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. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. 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. Customer Service. Initial filing by director officer or owner of more than ten percent. The purchase marks one of the largest ever for the software industry. 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. A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. Doug Merritt, Splunk's CEO for the past six years, stepped down in November. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. 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. 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. The notes have an annual interest rate of just 0.75% per year payable to Silver Lake, and they mature in July 2026 if they haven't been repurchased or redeemed by then. A rumored Mandiant acquisition discussion may hint at Microsoft's 2022 kickoff to major cybersecurity firm buys. SEC Filings. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. . This cloud transformation also caused Splunk to dip into negative free cash flow territory, and it only just returned to positive free cash flow in Q1 2022 (to $66.7 million). Sep 12, 2021. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. View our Privacy Policy for more information. 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. The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement.