That compares with a $114 share price at the end of trading Friday and $127.45 after hours. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. Cloudmeter. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. 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 makes acquisitions that are aligned with our business strategy and enable us to expand our product portfolio, address a broader set of customer challenges, and enhance our market leadership position as the platform for turning data into action. Read more . 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. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. We base our decisions on strategic fit, cultural fit, and equally as important, the financial and evaluation fit, he said when questioned about the potential acquisition. 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. 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. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. 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. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. See here for a complete list of exchanges and delays. So Splunk has been able to capture over 90 of the Fortune 100 companies as customers, even in spite of new cloud-based competition. The top source for up-to-the-minute company Merger News. This Splunk shareholder hopes management holds out for a much higher price than was reported. Cisco Sues Acacia Over Termination of $2.6B Merger Deal, Cisco Revamps Webex People Insights To Meet Hybrid Workplace Needs, Cisco Breaks Into CXaaS Market With Two Acquisitions, VMware and Cisco Continue To Battle for SD-WAN Supremacy. 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. Deliver the innovative and seamless experiences your customers expect. The offer was . Announcement Date: 6/6/2019. 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. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. Data is a real-time snapshot *Data is delayed at least 15 minutes. See why organizations trust Splunk to help keep their digital systems secure and reliable. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. Rigor's monitoring and optimization solutions complement the other Splunk offerings. People close to the company said the talks occurred recently, according to the Journal. How far over that figure will determine whether the acquisition goes through or not. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. Splunks acquisition of SignalFx adds real-time monitoring and metrics for cloud infrastructure, microservices and applications, enhancing Splunks position as a leader in observability and APM. 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. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. Splunks acquisition of Omnition adds distributed tracing analytics for next generation application monitoring, expanding Splunks observability capabilities. Splunk (SPLK -1.40%) has been a severe underperformer in the last year. Billy Duberstein owns Amazon and Splunk. Splunk experts provide clear and actionable guidance. Invest better with The Motley Fool. These are used to let you login and to and ensure site security. Splunk Redefines the Application Performance Monitoring Market. Learn More. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. So what should new GCP leader Thomas Kurian do? Shares of Splunk have fallen 49% since reaching a record in September 2020. And over the past few years, Splunk has made a number of tuck-in acquisitions to enter into the hot observability space, which allows corporations to monitor the health of software applications, in addition to IT infrastructure. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Splunk has acquired in 4 different US states, and 3 countries. 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.. You can manage your preferences at any time. (1 minute) Cisco Systems Inc. has made a takeover offer worth more than $20 billion for software maker Splunk Inc., according to people familiar with the matter, in what would . Cisco Systems Inc. has made a takeover offer worth more than $20 billion for software maker Splunk Inc., according to people familiar with the matter, in what would be the networking giants biggest acquisition ever. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. Craig is a proud Husky, having graduated from the University of Washington. Got a confidential news tip? 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's software collects data logs and can give an enterprise added insight into operations, security, and application performance. 5. According to The Wall Street Journal, Cisco (Nasdaq: CSCO) has made a "takeover offer" of more than $20 billion for Splunk, a software maker. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. 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). This is because of several transitions the company is undertaking at once. A Division of NBCUniversal. The companys software can be used for managing IT systems, DevOps and security. 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. Over half of Rigor's customers are already Splunk customers, so when they came calling as a potential acquirer, it was a perfect fit. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. 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 . And Kurian an Oracle veteran knows how to . The report about said discussions comes not long after Microsoft's mammoth $70 . Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. Sign In. The Motley Fool owns shares of and recommends Datadog and Splunk. 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. Finally, Splunk attracted tech-focused private equity firm Silver Lake last summer, which invested $1 billion in Splunk in the form of convertible preferred stock in June 2021. According to Futurum Research, the deal would be. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons Here are 12 other startups analysts say it could buy to fend off competitors. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. So Splunk appears to have staying power, and is bound to benefit from the growth of the enterprise data analytics industry this decade. Splunk experts provide clear and actionable guidance. 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? The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. A statement of beneficial ownership of common stock by certain persons. Transform your business in the cloud with Splunk. While the revenue has been growing consistently, it has not grown at especially remarkable rates. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. About Broadcom Corp.: Broadcom Inc. (old name: Avago Technologies) is a maker of products based on analog and digital semiconductor technologies. Cisco Has Discussed Deal for Software Company Splunk. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. 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. 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. 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. All Rights Reserved. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. That certainly indicates the new cloud offerings are very successful with customers. 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. See here for a complete list of exchanges and delays. See why organizations around the world trust Splunk. Then there's also the balance sheet. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. Apr 16, 2021 1:02 PM EDT. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . 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. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. 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. maroon and black color combination Addiction rehab & recovery treatment programs for seniors senior-recovery.org Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. 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. The two companies have an existing partnership in which Cisco uses Splunks analytics surface insights and inject more automation across its security, networking, wireless, data center and collaboration portfolios. With a price to sales ratio of 5.6. The site owner may have set restrictions that prevent you from accessing the site. Discover what Splunk is doing to bridge the data divide. Aug 22, 2019 . But looking under the hood to ARR and the cloud segment shows a much better growth picture. 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. I think Splunk is a very lucrative acquisition target for several major players including .

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