Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. 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. The companys software can be used for managing IT systems, DevOps and security. A spoksperson for Splunk cited its policy not to comment on rumors or speculation. 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. Access timely security research and guidance. Customer success starts with data success. 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. 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. 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, Copyright, Trademark and Patent Information. and is author of the Entrepreneur Journeys book series and Vision India 2020. Is this the software value stock for you too? Cisco recently made an offer for IT management and data analytics company Splunk. See here for a complete list of exchanges and delays. 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. 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. Companies Contacts Investors Funding Rounds Acquisitions People Events Schools Hubs Saved . Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. Alphabet certainly has the war chest for such deals. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in . Alex Murdaughs Trial Lasted Six Weeks. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Dropbox revenue for the twelve trailing months ending September 30, 2020 was $1.856B, a 16.63% increase year-over-year. Splunks acquisition of Streamlio accelerates Splunk's efforts in real-time stream processing and containerized multi-tenant cloud platform applications expanding Splunk's commitment to and participation in the open source software community. At the end of April, the company had $1.88 billion in cash, equivalents, and investments, offset by convertible notes of $2.33 billion. In that light, it's no wonder Cisco may see an opportunity to swoop in at this time of transition and uncertainty to take Splunk for itself. Visit ESPN to view the Cincinnati Reds team transactions for the current and previous seasons Company Location: Mount Laurel, NJ. Head over to the Spiceworks Community to find answers. BILL Holdings, Inc., formerly Bill.com Holdings, Inc., is a provider of cloud-based software that digitizes and automates financial operations for small and midsize businesses (SMBs). Management expects to be in the black for the balance of the year ahead, so that's good news. 3rd Party Cookie de-Personalization - We configure 3rd party analytics cookies to anonymize IP address and 3rd party targeting cookies to only set non-personalized information in these cookies to respect your privacy. The Wall Street Journal reported the potential deal earlier on Friday. Cisco and Splunk representatives declined to comment. Splunk's acquisition of TruSTAR extends its leadership in security analytics through cloud-native threat intelligence integration and automation. 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. Give . Big banks and activist investors snapped up shops, there were mega-mergers between one-time rivals, and subsidiaries spun off. Across 2020, Splunk's cloud business represented nearly half of the company's software bookings, enabling organizations to migrate workloads and applications to the cloud, manage colossal spikes in data volume or increase visibility into cloud security risks. For many organizations, 2020 has been a year of cutting costs and staying afloat amid a turbulent market. It has remained stable since at around $122 per share. 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). Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Cloud annual recurring revenue (ARR) has been off to the races and was up 83% year over year in Q1 fiscal 2022 to $833 million, but these changes have throttled overall revenue expansion. 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. 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. Do you still have questions? Will Townsend. Splunks acquisition of Cloudmeter adds new capabilities to Splunk products that enable customers to analyze machine data directly from their networks and correlate it with other machine-generated data to gain insights in application and infrastructure management, IT operations, security and business analytics. The potential deal could position Cisco to compete with security leader Palo Alto Networks in the security operations space. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. Initial filing by director officer or owner of more than ten percent. Splunk said it does not comment on rumors or speculation. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. However, now it's coming through the other end of it: Even though Splunk is now past the bottom of the transition, revenue growth according to generally accepted accounting principles (GAAP) is still lagging behind the real recurring top line the company is taking in. The Leading Resource on Next-Generation IT Infrastructure. Statement of changes in beneficial ownership of securities. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The industry leader for online information for tax, accounting and finance professionals. Sign up for free newsletters and get more CNBC delivered to your inbox. Cost basis and return based on previous market day close. 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. Splunks acquisition of SignalSense enables Splunk to further innovate in our market-leading machine data platform and expands Splunks expertise in machine learning and cloud applications. 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. Plan your migration with helpful Splunk resources. 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. Founded in the era of data centers, it has struggled to fully transition to the cloud and adjust its pricing model. acquisition-related adjustments, amortization of intangible assets and . Network gear maker Cisco Systems has made a takeover offer worth more than $20 billion for software maker Splunk, The Wall Street Journal reported on Friday, citing people familiar with the matter. 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. We are delighted that you'd like to resume your subscription. His clients may own shares of the companies mentioned. June 5. splunk acquisition rumors 2020 . Apr 16, 2021 1:02 PM EDT. See why organizations around the world trust Splunk. 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. Here are 12 other startups analysts say it could buy to fend off competitors. While the revenue has been growing consistently, it has not grown at especially remarkable rates. $ + tax 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. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million. Company Location: U.K. Press Release: 1/30/2020 Xerox Acquires Arena Group, Expands Presence in European SMB Market. You can manage your preferences at any time. Read focused primers on disruptive technology topics. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. My core competency is finding out people's issues in business. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. New rumors indicate that Microsoft's acquisition of gaming companies does not seem to have stopped. Prior to joining CRN, she covered the networking, unified communications and cloud space for TechTarget. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. It's had to adapt its suite of services and the way it bills customers for this new cloud era. Cisco did not immediately respond to a request for comment, while a spokesperson for Splunk said the company did not comment on rumors or speculation.