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. Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Its past deals include Acacia, a maker of optical network components; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. We are delighted that you'd like to resume your subscription. Microsoft CEO Satya Nadella has been going on a major shopping spree. The offer was made recently and the companies arent currently in active talks, some of the people said. Will Townsend. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. The top source for up-to-the-minute company Merger News. Cisco Has Discussed Deal for Software Company Splunk. 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. We use cookies to ensure you get the best experience on our website. 10 . This allows me to: * Improve business processes and generate change successfully in organisations<br>* Manage . Billy Duberstein owns Amazon and Splunk. 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. Our servers do not recognize your request. *Average returns of all recommendations since inception. See why organizations around the world trust Splunk. For every deal we do, we probably look at 10-15 companies. Making the world smarter, happier, and richer. SignalFx acquired by Splunk . A 24/7 Wall St. analysis reveals that the largest merger deal of the past two decades was worth more than $128 billion. Initial filing by director officer or owner of more than ten percent. 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. A Division of NBCUniversal. 3. 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. 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 . 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. Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. 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. This is because of several transitions the company is undertaking at once. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. Daily chart of Splunk stock. Splunk has acquired in 4 different US states, and 3 countries. 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. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . In any case, the reporting suggested the offer was more than $20 billion. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. 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. 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. Read focused primers on disruptive technology topics. Opinion: Yes, Theres a Housing Crisis. Cisco is using acquisitions to help it grow . How far over that figure will determine whether the acquisition goes through or not. I think Splunk is a very lucrative acquisition target for several major players including . 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. The industry leader for online information for tax, accounting and finance professionals. At this price, it appears Cisco would be getting a steal, unless the price winds up being a lot higher than the $20 billion reported. Network gear maker Cisco Systems Inc has made a takeover offer worth more than $20 billion for software maker Splunk Inc , the Wall Street Journal reported on Friday, citing people familiar with . And Kurian an Oracle veteran knows how to . Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. That compares with a $114 share price at the end of trading Friday and $127.45 after hours. 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. Splunk vs Uber I got the final offer from Splunk (P4: 230k, 15%, 440k/3yrs, TC=411k), probably the highest offer for P4. This Is the Largest Merger of the Past 20 Years. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Cisco has long grown its business through acquisitions and in 2020 it bought networking monitoring company ThousandEyes for about $1 billion. 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. Cost basis and return based on previous market day close. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. That certainly indicates the new cloud offerings are very successful with customers. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. VictorOps . 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. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. A statement of beneficial ownership of common stock by certain persons. Dropbox is a 9.3 billion market cap company. Published Dec. 1, 2020 Updated Jan. 4, 2021. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. 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. Cisco and Splunk have been in the news since last week when The Wall . We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. In the most recent quarter, revenue growth came in at 19%, but ARR grew 37%. 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. Still, it does not have currently have a . *Average returns of all recommendations since inception. These rankings reflect its credentials and dominance in the space. As I see it, Splunks presence in the security and observability space would be an incredibly attractive addition to Ciscos existing solutions, while adding a substantial cloud and recurring revenue-based business to the companys top line, said Daniel Newman, Futurums principal analyst. Splunk is well off its highs and seems undervalued. The Motley Fool has a disclosure policy. 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. 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. Founded in 2003, it was an early mover in the data analytics space, even before cloud computing came into being. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Give . Oct 20, 2020 . As I see it, Splunks presence in the security and observability space would be an incredibly attractive addition to Ciscos existing solutions, while adding a substantial cloud and recurring revenue-based business to the companys top line, said Daniel Newman, Futurums principal analyst. Splunks acquisition of Drastin expands Splunks search-driven analytics capabilities and enhances our ability to provide an intuitive search experience for our customers. You will be notified in advance of any changes in rate or terms. Microsoft said last month that it was planning to acquire the video game company Activision Blizzard for nearly $70 billion, and Salesforce acquired the workplace software company Slack last year for $27.7 billion. Splunk CEO on the data firm's new initiative focused on government cybersecurity, Jim Cramer's Investing Club meeting Friday: Costco, Eli Lilly, Apple, Goldman Sachs upgrades this internet of things stock which it sees surging 60%, Top 10 things the Club is watching in the stock market Friday. 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. The final billion-dollar deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. 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. 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. These two acquisitions formed the basis . However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Nicholas Rossolillo owns shares of Dynatrace Holdings LLC and Splunk. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. It has remained stable since at around $122 per share. The Motley Fool owns and recommends Amazon, Cisco Systems, Datadog, and Splunk. 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.
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