Daily chart of Splunk stock. Deliver the innovative and seamless experiences your customers expect. 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. Splunks acquisition of Flowmill brings next-generation cloud network performance monitoring to Splunks Observability solutions. You will be notified in advance of any changes in rate or terms. See here for a complete list of exchanges and delays. 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. 4. Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. These rankings reflect its credentials and dominance in the space. Necessary and Functional Cookies - These cookies are necessary for the Site to function and cannot be switched off in our systems. According to a follow-up report from Bloomberg, talks between the companies broke down in recent weeks. Additionally, cloud revenue has a lower gross margin than term software licenses, but that's generally made up for in higher growth. The top source for up-to-the-minute company Merger News. 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. It's obviously a nice thing when someone is interested in your stock, but as a recent Splunk shareholder, I'm hoping the company doesn't sell, if the offer is in fact close to $20 billion. For every deal we do, we probably look at 10-15 companies. Speaking of Splunk and acquisition rumors, I was surprised that Robbins wasn't quizzed more about the rumored Splunk acquisition. Do you still have questions? 2023 CNBC LLC. Last week, Rigor's acquisition by Splunk was announced and it's a testament to Craig and his team for building an . Read focused primers on disruptive technology topics. Statement of changes in beneficial ownership of securities. The combination could create a security powerhouse that would combine Ciscos strength in network security with San Francisco-based Splunks strength in data-focused security operations. Cisco, a leader in unified access security and multifactor authentication thanks to its 2018 $2.35 billion Duo Security buy, could be complimented by Splunks strength around security operations, which the company came by from its own 2018 acquisition of Phantom Cyber, a company specializing in security orchestration, automation and response capabilities. This includes computing devices, control systems, sensors, or anything else connected . 10 . 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. Splunk has positioned itself as the leader in helping large enterprises manage and monitor their IT systems. Finally, recent concerns about inflation and higher interest rates have hurt most tech companies, especially those still losing money. Splunks acquisition of Rigor adds a unique Digital Experience Management (DEM) platform that combines the power of synthetic monitoring with intelligent optimization engine capabilities to enhance Splunk's Observability solutions. According to Futurum Research, the deal would be. 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. Published Dec. 1, 2020 Updated Jan. 4, 2021. Report of unscheduled material events or corporate event, A statement of beneficial ownership of common stock by certain persons. Two Days Mattered Most. The initial conversion price is $160 per share. Robbins also cited the company's policy not to comment on rumors or speculation regarding the reported Splunk acquisition. The offer was . Give . TechCrunch. In GlobalDatas thematic scorecard for application software, Splunk ranked fifth out of 45 companies, and the company also boasts a score of 5 out of 5 in the cybersecurity theme. Alex Murdaughs Trial Lasted Six Weeks. Opting out of these cookies may impact some minor site functions. 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. This one was a gift for the core CRM product. The Motley Fool has a disclosure policy. Just to provide a sense of the activity, Cisco conducted nine acquisitions in 2020, six in 2021, and has conducted one YTD in 2022. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. The Wall Street Journal reported that Cisco offered the data observability and security information and event management (SIEM) provider $20 billion. Cisco Systems' rumored acquisition offer for Splunk would create one of the largest cybersecurity vendors in the world.. and is author of the Entrepreneur Journeys book series and Vision India 2020. We use cookies to ensure you get the best experience on our website. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Silver Lake obviously sees upside for Splunk stock and will collect a meager amount of interest along the way for its convertible debt stake in the company. That's a change from its traditional business model of selling perpetual software licenses, deployed in customers' data centers. A data platform built for expansive data access, powerful analytics and automation, Cloud-powered insights for petabyte-scale data analytics across the hybrid cloud, Search, analysis and visualization for actionable insights from all of your data, Analytics-driven SIEM to quickly detect and respond to threats, Security orchestration, automation and response to supercharge your SOC, Instant visibility and accurate alerts for improved hybrid cloud performance, Full-fidelity tracing and always-on profiling to enhance app performance, AIOps, incident intelligence and full visibility to ensure service performance. Accelerate value with our powerful partner ecosystem. 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. Discover what Splunk is doing to bridge the data divide. See here for a complete list of exchanges and delays. 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 . This allows me to propose solutions that help my clients. Microsoft's acquisition of B's parent company for $7.5 billion in March of this year shocked the gaming industry and raised the level of XBOX's camp. Splunks acquisition of Plumbr enhances the auto-instrumentation, real user monitoring and deep application performance monitoring capabilities of Splunks Observability solutions. 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. The . 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. 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.. Then there's also the balance sheet. Several years ago, Splunk began to deploy its offering via the cloud on a subscription basis. They said I didn't meet their bar for principal but P4-high. Cisco Systems has held acquisition talks with Splunk, whose software mines data for insights, including security threats. Invest better with The Motley Fool. 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. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software. New transactions may be ongoing, let's look at the details. 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. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 3. While the offer from Cisco is a nice indicator of Splunk's value, as a Splunk shareholder, I really hope management rejects the offer or demands a much higher price. She added that the acquisition of Splunk will help Cisco achieve growth in this segment. We would love to hear from you! This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. 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. You can see Splunk's revenue took a dip in 2020 as it went through the trough of this transition. Th ecompany serves four primary markets: wired infrastructure, wireless communications, enterprise storage, and industrial & others. According to Newman, Splunk underwent a rough phase in 2021, losing its CEO and witnessing its stock price taking a tumble, but the company still packs a punch and offers a lot of value to potential buyers. 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. Is Responsible AI a Technology Issue or a Business Issue. 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 offer was made recently and the companies arent currently in active talks, some of the people said. Not surprisingly, when asked about the rumored acquisition during the earnings call, Robbins was coy, refusing to comment on the rumors and providing no hints in either his comments or . 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 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. 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. 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. Palo Alto also bought security orchestration, automation and response player Demisto, a direct competitor of Phantom, in 2019 for $560 million.
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