Technology has been a hotbed of mergers and acquisitions activity over the past year, as soaring stock prices have left companies flush with cash. Leonard Bosack and Sandy Lerner came together to launch Cisco, opening to the pubic in 1990. In 2021, $2.6 trillion of merger deals were announced, up 76% year-over-year. Cisco has a reported market capitalization of around $227.33billion. Updated 4:56 PM ET, Sat February 12, 2022. Moving higher, a $25 billion buyout would imply a premium of about 28%. IggyGarcia.com & WithInsightsRadio.com, For more information, please visit: IggyGarcia.com & WithInsightsRadio.com, My guest is intuitive empath AnnMarie Luna Buswell, Iggy Garcia LIVE Episode 171 | An appointment with destiny, Iggy Garcia Live Episode 170 | The Half Way Point of 2022, Iggy Garcia TV Episode 169 | Phillip Cloudpiler Landis & Jonathan Wellamotkin Landis, Iggy Garcia LIVE Episode 167 My guest is AnnMarie Luna Buswell, Iggy Garcia LIVE Episode 166 The Animal Realm, Iggy Garcia LIVE Episode 165 The Return, Iggy Garcia LIVE Episode 164 Recap of 2021. The deal, she said, will further strengthen Ciscos foothold in the security and analytics space, especially in Extended Detection and Response (XDR).. Our Standards: The Thomson Reuters Trust Principles.
Read the Wall Street Journal report here. The people requested anonymity because the information is confidential. If the deal ends up happening, it will be Cisco's biggest acquisition to date. Cisco, which is set to report its latest results next week, has been expanding its software and services -- an attempt to rely less on its hallmark networking hardware. Article printed from InvestorPlace Media, https://investorplace.com/2022/02/splk-stock-alert-is-cisco-about-to-buy-splunk-9-things-to-know/.
GoPro Accessories Savings - 40% off HERO8 Black Media Mod, 30% off smartphones + free shipping - Samsung promo code, Save up to 30% + free shipping with Dell coupons, TigerDirect coupon code - 10% off first order. 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. Ciscos acquisition offer shows us that cybersecurity will continue to be a key driver of mergers and acquisitions (M&A) in 2022. Cisco did not immediately respond to a request for comment. With roots in data analytics software, Splunk has expanded into security. The offer was made recently and the companies arent currently in active talks, some of the people said. In this episode I will speak about our destiny and how to be spiritual in hard times. All rights reserved. The U.S.-led chip alliance, called "Chip 4", should promote the stability of the global supply chains, rather than harming or causing market fragmentation, China's commerce ministry said on Thursday. Let us know if you enjoyed reading this news on LinkedIn, Twitter, or Facebook. 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. Special webinar sale: Join IBD Digital and get 2 months of access for $12thats over $57 off! While Meraki, Sourcefire, OpenDNS, Acacia have been well-executed acquisitions, AppDynamics has stood out as a pure-play software acquisition that has not performed well (with AppDynamics revenue down Y/Y in some recent quarters).. He is best known in the industry for his stint as the chief financial officer and later executive vice president at Salesforce. Splunk named after spelunking, the sport of cave exploring mines data for insights, including security threats, a business that grew in importance as the coronavirus pandemic quickly forced many workers online. a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Cisco has sought to expand its security business while also selling data center networking equipment and Webex collaboration software.
Last year, Splunk announced that investment firm. 7/21/2022 Splunks stock price fell 20% over a six-month period, and the company reported a GAAP operating loss of $780 million in 2021. Ciscos growth is bogged down by a lack of foothold in the cloud-based subscription space which offers great promise for the future. Do you still have questions?
Cisco (ticker: CSCO) made the offer recently and the companies are not in active talks, The Wall Street Journal reported on Friday, citing people familiar with the matter. Splunk may prefer posting a solid quarter or two to drive up its asking price, BMO Capital Markets analyst Keith Bachman said in a note to clients. "The story at Splunk has been one with many twists and turns over the past several quarters," Jefferies analyst Brent Thill said in his note to clients. 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. Mergers have been a hot commodity in recent months.
The positive reaction from investors has some logic to it. Cisco Systems, the technology conglomerate, has held discussions with the software company Splunk about buying it, although no deal is currently on the table, two people familiar with the matter told The New York Times on Friday. 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. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. All Rights Reserved. Get market updates, educational videos, webinars, and stock analysis. Should a deal for Splunk be consummated it would be by far Cisco's largest ever. This growth and its corner on a key market segment continue to make Splunk an attractive acquisition for Cisco, he said. Ciscos planned acquisition of Splunk has received favorable reactions from industry analysts. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. An error has occurred, please try again later. Is Cisco Stock A Buy Or Sell As Investors Mull Possible Large Acquisition? "Splunk has struggled with a combination of sales execution issues, lack of visibility amid an elongated cloud business model transition, and uncertainty at the helm with the company still actively searching for a new (CEO). Authors may own the stocks they discuss. 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. https://www.wsj.com/articles/cisco-made-20-billion-plus-takeover-offer-for-splunk-11644622277. It will also affirm Ciscos projected dominance in the sector in the years ahead. Got a confidential news tip? Splunk said it does not comment on rumors or speculation. If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. 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. Revenue from subscriptions and software will reach 50% of Ciscos total by fiscal 2025, the company predicted in September. If Splunk accepts Ciscos offer, it would be Ciscos largest buyout since its acquisition of Scientific Atlanta in 2005. 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. 2000-2022 Investor's Business Daily, LLC. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. The Wall Street Journal previously reported on the discussions, saying that Cisco offered more than $20 billion for the software company. Investors.com will undergo scheduled maintenance tonight from 10:00 PM to 2:00 AM ET and some features may be unavailable. Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. 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. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Splunk said it does not comment on rumors or speculation. for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. The offer exceeds Splunks current market capitalization by $2 billion, but reports indicate the two companies havent discussed it yet. 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. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The company has been pivoting to a recurring revenue model by shifting from traditional software licenses to cloud-based subscriptions while also steadily growing the customer base. All rights reserved. This copy is for your personal, non-commercial use only. Cisco Has Discussed Deal for Software Company Splunk, https://www.nytimes.com/2022/02/11/technology/cisco-splunk.html. Total revenue at Splunk grew 19% from a year earlier, while Cisco's overall revenue in the most recent quarter increased 8%. Splunk stock jumped on Monday amid reports Cisco Systems (CSCO) made a $20 billion offer for the software company. Realtime quote and/or trade prices are not sourced from all markets. The company is set to report earnings on March 2. Email us firstname.lastname@example.org call212 416 4552. Cisco Systems We are but a speck on the timeline of life, but a powerful speck we are! Iggy Garcia. 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. San Jose, Calif.-based Cisco sells routers, switches and security services as well as software products. Will the acquisition of Splunk change things? Shares of the software solutions company are up over 8% after it was reported that Cisco (NASDAQ:CSCO) had made an offer to acquire Splunk. San Jose, CA-headquartered Cisco Systems, Inc. has reportedly offered $20 billion-plus to acquire data analytics giant Splunk. 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., 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. So, what else should investors know about the potential SPLK stock takeover news?
Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Splunk stock reports earnings on March 2. made a takeover offer of more than $20 billion for the data analytics software company. , which broke the news on February 11, the two companies havent gotten around to discussing the acquisition yet. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Splunk produces software used for searching, monitoring, and analyzing machine-generated data. SPLK Stock Alert: Is Cisco About to Buy Splunk? Graham V. Smith, the chairman of Splunks board, is currently serving as interim CEO to fill the leadership void. *Real-time prices by Nasdaq Last Sale. If the deal goes through, Cisco is expected to gain a dominant position in the enterprise security market, she said. Lets jump right in. We will be traveling to Peru: Ancient Land of Mystery.Click Here for info about our trip to Machu Picchu & The Jungle. These rankings reflect its credentials and dominance in the space. CNN reported on the 'browser wars' it started in 1996, Robots could soon look human, with living skin and hair, Apple's CEO responds to evolving workplace dynamics, Meet the researchers revolutionizing micro-scale robots for medical use. Sign up for free newsletters and get more CNBC delivered to your inbox. The other half of Splunk's business in observability would be a natural complement to Cisco's existing monitoring solutions (AppDynamics) and could better position Cisco as an end-to-end platform to compete with rising stars such as CrowdStrike (CRWD), Datadog (DDOG) and others.". Meanwhile, Chief Executive Doug Merritt stepped down in November and the role is being filled temporarily by board Chairman Graham Smith.
In addition, it's undergoing a transition to a software-as-a-service business model. The industry leader for online information for tax, accounting and finance professionals. Splunks stock price fell 20% over a six-month period, and the company. quotes delayed at least 15 minutes, all others at least 20 minutes.
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Founded on December 10, 1984, Cisco is a leading technology corporation with a headquarters in San Jose, California.
Factset: FactSet Research Systems Inc.2018. That sent shares of Splunk up as much as 16% in late trading Friday. Copyright 2000-2022 IGNACIO GARCIA, LLC.All rights reserved Web master Iggy Garciamandriotti@yahoo.com Columbus, Ohio Last modified May, 2021 Hosted by GVO, USC TITLE 42 CHAPTER 21B 2000BB1 USC TITLE 42 CHAPTER 21C 2000CC IRS PUBLICATION 517. Nasdaq
For the best Barrons.com experience, please update to a modern browser. Chairman Graham Smith is currently acting as the interim CEO. 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. https://www.barrons.com/articles/cisco-splunk-stock-price-buyout-offer-51644836388. Chuck Robbins, CEO, Cisco Systems, speaking at the World Economic Forum, Davos, Switzerland, January 21, 2020. 7/21/2022 The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. for both companies.
Continue reading your article witha WSJ membership, Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. It has remained stable since at around $122 per share. For non-personal use or to order multiple copies, please contact Cisco is known as a serial acquirer, effectively using acquisitions as a complement to research and development. Join WSJ and watch techs biggest players break techs biggest news. Iggy Garcia LIVE | Episode 162 Spiritual Tune Up.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. According to Futurum Research, the deal would be a good fit for both companies. Disclaimer. That valued the company at $23 billion, Raymond James analyst Adam Tindle said in a note. The Silicon Valley giant has traditionally generated the bulk of its revenue from equipment that forms the backbone of computer networks, but thats been changing. With Splunk technology, data is correlated in a simplified and searchable way; the software identifies data patterns, provides metrics, diagnoses problems and provides intelligence to further business operations. All rights reserved. It will also affirm Ciscos projected dominance in the sector in the years ahead. Ciscos $20 billion acquisition offer, which is $13 billion more than its highest acquisition ever, comes after the company announced a 17% rise in net income and a 6% rise in revenue in Q2 2022 against Q2 2021. We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Ciscos innovation. Cisco did not immediately respond to a request for comment. In June, the private-equity firm Silver Lake invested $1 billion in Splunk to help with that transition.
Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Shares of However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. As for Cisco, Newman said the company made significant investments in cloud, software, and other higher-margin offerings, and the Splunk deal could help it achieve further growth in these bitterly-contested verticals. The Wall Street Journal reported the potential deal earlier on Friday. 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. Private equity firm Silver Lake last year made a $1 billion investment via convertible debt in Splunk. If youre curious about my background and how I came to do what I do, you can visit my about page. The ongoing business model transition and growing competition at Splunk could present additional challenges for Cisco if they pursued this acquisition. Ciscos offer comes when Splunk is actively hunting for a new CEO following former president and CEO Doug Merritts departure in November 2021. However, the two companies are not currently in active talks, so it seems that Cisco is simply putting an offer on the table. Stay away from the FAANG, but remain invested in tech: Strategist, Darren Sissons discusses the FAANG stocks and Microsoft, Amazon breakout would be a 'really big deal': Fairlead Strategies founder Katie Stockton, Investors to see 'nothing but blowout earnings' for this quarter: Belpointe's David Nelson, McCreath: April CPI data spooks equity markets, Bears think tech earnings aren't sustainable but fundamentals are strong: Wedbush Securities' Ives. Reach market shark status with 4 weeks of MarketSmith for $29.95 (that saves you $120)! 2022 InvestorPlace Media, LLC. Find the best mutual funds, monthly performance reports and exclusive Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. The information you requested is not available at this time, please check back again soon. Splunk, meanwhile, announced last year that private equity firm Silver Lake was investing $1 billion in the company. However, Splunks investors reacted positively to the news, with the companys stock price jumping 9% on the morning of February 14. The offer was made recently, and the companies are not in active talks, the newspaper. IBD offers a broad range of growth stock lists, such as Leaderboard. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Copyright 2022 InvestorPlace Media, LLC. Splunk shares rose as much as 14% in extended trading after a report about an acquisition offer from Cisco.
It was amazing and challenging growing up in two different worlds and learning to navigate and merging two different cultures into my life, but I must say the world is my playground and I have fun on Mother Earth. Cisco is working toward a shift to software and reoccurring revenue-based sales.
BREAKING: Tech Futures Fall As Snap, Intuitive Surgical Dive On Earnings. Sapana Maheria, practice head of Thematic Research at GlobalData, believes that if the acquisition goes through, it will bode well for further big-ticket mergers and acquisitions in the cybersecurity sector in the year ahead, especially in the behavioral analytics space. 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. Morgan Stanley's Wilson predicts the S&P 500 trough: It will come 'pretty quickly', Morningstar strategist says two FAANG stocks look incredibly cheap right now, What traders are watching for before they believe this comeback is for real, Analyst explains how to trade chip stocks right now and gives one upside of nearly 100%.