splunk acquisition rumors 2020

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 . 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's software has gained popularity as a tool for spotting security threats. Splunk The $19.67 billion data-analytics company Splunk has had its ups and downs. The Company's most targeted sectors include internet software and services (50%) and software (29%).. Join Mergr and gain access to Splunk's M&A summary, the M&A summaries . Aruba, a Hewlett Packard Enterprise Company, AMD & Supermicro Performance Intensive Computing, Cisco Powers Hybrid Work With Private 5G, New Wi-Fi 6E And Catalyst Series. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. 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? She can be reached at gnarcisi@thechannelcompany.com. A statement of beneficial ownership of common stock by certain persons. 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. Accelerate value with our powerful partner ecosystem. 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. See why organizations trust Splunk to help keep their digital systems secure and reliable. 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. 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. Though the two companies didnt react to the rumors for a few days after they surfaced, Chuck Robbins, Ciscos chairman and CEO, confirmed the developments during its Q2 earnings call. When submitting your ticket, please include the RayID detailed below for a faster resolution. But there's still lots of work to be done on the cloud business. 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. And cloud-based annualized recurring revenue grew 75%, with a cloud-based net retention rate of 130%. Making the world smarter, happier, and richer. The companys software can be used for managing IT systems, DevOps and security. *Average returns of all recommendations since inception. 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. Senior Assistant Editor, Spiceworks Ziff Davis, Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company. The stock's still trading below its 50-, 100-, and 200-day moving averages after a Christmas period in which you'd have expected the stock to rebound amid a 2.8% . You can manage your preferences at any time. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. 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. 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. The Omnition purchase follows Splunk's announcement last month that it planned to acquire cloud monitoring company SingalFx for $1.05 billion -- its largest acquisition ever. List of Splunk 's 16 Acquisitions, including TwinWave and TruSTAR. Th ecompany serves four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. The top source for up-to-the-minute company Merger News. 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. Sep 12, 2021. Invest better with The Motley Fool. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . Should a deal for Splunk be consummated it would be by far Cisco's largest ever. Splunk's $1 billion cash windfall gets it access to some cheap capital -- at least cheap in the short-term. 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. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. 3. This allows me to propose solutions that help my clients. L Brands' plan was to spin its Bath & Body Works brand off into a stand-alone company and sell its lagging Victoria's Secret/Pink brands to the highest bidder. With the Acquisition Bode Well for Cisco? The board named Chairman Graham Smith as interim CEO and kicked off a search for a permanent replacement. Splunk said it does not comment on rumors or speculation. Here are 12 other startups analysts say it could buy to fend off competitors. 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. However, a handful of major players, particularly in tech, have continued to expand through mergers and acquisitions. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. 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. 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 . The reported Cisco-Spunk deal could position the company as a much more formidable security player with competitor Palo Alto Networks. 2005 - 2023 Splunk Inc. All rights reserved. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. 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 (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? According to The Wall Street Journal, which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. From 2008 to 2010, Mitra . This one was a gift for the core CRM product. Requested URL: www.sdxcentral.com/articles/analysis/who-will-cisco-buy-instead-of-splunk/2022/02/, User-Agent: Mozilla/5.0 (Windows NT 6.1; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/103.0.0.0 Safari/537.36. VictorOps . Opting out of these cookies may impact some minor site functions. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. The offer exceeds Splunk's current market capitalization by $2 billion, but reports indicate the two companies haven't discussed it yet. The Google parent had more than $100 billion in cash on hand and short-term investments as of September 2018, according to YCharts. Pekka Lundmark, Nokia Brand Reveal, Mobile World Congress Barcelona 2023. Splunk has been in the process of shifting toward providing cloud services to customers, and said in December that almost 37% of revenue in the latest quarter was tied to cloud usage. SAN FRANCISCO and .conf20 - October 20, 2020- Splunk Inc. (NASDAQ: SPLK), provider of the Data-to-Everything Platform, today announced that it has completed the acquisition of Plumbr, an application performance monitoring (APM) company offering auto-instrumentation, Real User . Our servers do not recognize your request. 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.. But looking under the hood to ARR and the cloud segment shows a much better growth picture. 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. Here's how they differ, Bank of America loves this under-the-radar streaming stock out of China, sees 30% gain. 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. Opinion: Yes, Theres a Housing Crisis. Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth, said Chuck Robbins, chair and CEO of Cisco. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. SEPTEMBER 2013. Cisco is reportedly eyeing a Splunk acquisition. Statement of changes in beneficial ownership of securities. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. Will Townsend. At just under 10 times trailing-12-month sales, this cloud stock trades for a discount to its higher growth peers like Dynatrace and Datadog. 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.