This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Cisco Made $20 Billion-Plus Takeover Offer for Splunk
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Cisco Made $20 Billion-Plus Takeover Offer for Splunk
Markets

Cisco Made $20 Billion-Plus Takeover Offer for Splunk

Editorial Board Published February 12, 2022
Share
Cisco Made  Billion-Plus Takeover Offer for Splunk
SHARE

Cisco Systems Inc. CSCO -1.77% has made a takeover offer worth more than $20 billion for software maker Splunk Inc., SPLK -2.76% according to people familiar with the matter, in what would be the networking giant’s biggest acquisition ever.

The offer was made recently and the companies aren’t currently in active talks, some of the people said.

Should there be a deal, it would eclipse the roughly $7 billion acquisition of Scientific Atlanta in 2005. Its most recent deal of size was its nearly $5 billion purchase of Acacia Communications Inc. in 2021.

Splunk is currently searching for a chief executive after Doug Merritt stepped down from the role in November after roughly six years following a series of disappointing earnings reports. The company named Chairman Graham Smith as interim CEO, a position he still holds.

Splunk shares rose sharply early in the pandemic as did those of a number of other technology companies with strong growth potential, but have almost fallen in half since then.

The shares rose as much as 17% in after-hours trading after The Wall Street Journal reported on the potential deal.

It isn’t clear whether other potential suitors are circling Splunk.

Splunk, founded in 2003, makes software used by companies’ information-technology and security operations to monitor and analyze data.

San Jose, Calif.-based Cisco, run by Chief Executive Chuck Robbins, sells routers, switches and security services as well as software products such as its Webex meeting application. It already has a data-security partnership with Splunk.

In a sign of the increasing importance it places on software, Cisco in September said it would introduce new financial metrics and overhaul its reporting segments to showcase the growth of its software business.

The idea was to illustrate the company’s shift toward software and recurring revenue, Chief Financial Officer Scott Herren said at the time.

Software sales accounted for 30% of Cisco’s total revenue in fiscal 2021. The company said it wanted subscriptions to generate 50% of annual revenue in fiscal 2025, up from 44%. Cisco reported revenue of $49.8 billion for the year, up 1%. Net income was $10.6 billion, down 6%.

Cisco’s interest shows that the networking giant—a serial acquirer, but usually of smaller companies—has an appetite for big deals.

And it has the wherewithal, with a market value of around $230 billion and more than $20 billion in cash and short-term investments.

Software has been a hot corner of the M&A market lately, with a number of companies in the sector being snapped up by private-equity firms or other industry players. In one of the latest examples, Citrix Systems Inc. agreed to be taken private by a pair of private-equity firms in an acquisition valued at $16.5 billion, including debt.

Splunk said in June that technology-focused private-equity firm Silver Lake was making a $1 billion investment in the company to help support the transformation of the business. Splunk has been shifting from a traditional software-licensing arrangement to a cloud-based subscription model. An increase in the shares on news of that investment had evaporated by the close of trading Friday.

Cisco wouldn’t be the only legacy technology company making a big bet on growth through a flashy acquisition. Microsoft Corp. in January agreed to buy videogame maker Activision Blizzard Inc. for about $75 billion in what would be its largest acquisition by far. In December, Oracle Corp. agreed to buy electronic-medical-records company Cerner Corp. for more than $28 billion, in its biggest deal ever.

Cisco is set to report its fiscal second-quarter earnings Feb. 16, while Splunk reports March 2.

The deals punctuate a hot merger market as companies, especially technology concerns, use generally strong stock prices and big cash piles to scoop up rivals that can help them expand in desired areas.

There were $2.6 trillion of merger deals announced in the U.S. in 2021, up 76% from the prior year, according to Dealogic.

Overhanging the deals market is a fear the Biden administration may take a hard line on antitrust reviews of proposed transactions, but it’s not clear yet what its posture will be.

—Nina Trentmann contributed to this article.

Write to Dana Cimilluca at dana.cimilluca@wsj.com and Cara Lombardo at cara.lombardo@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Canadian Judge Gives Green Light to Remove Protesters From Bridge Canadian Judge Gives Green Light to Remove Protesters From Bridge
Next Article OpenSea’s NFT Free-for-All OpenSea’s NFT Free-for-All

Editor's Pick

JPMorgan unveils its 2025 summer season studying record

JPMorgan unveils its 2025 summer season studying record

JPMorgan Chase Chairman and CEO Jamie Dimon on the significance of management abilities, deregulation coverage, power independence and the Federal…

By Editorial Board 4 Min Read
Girl fights for her brother Jason Corbett’s honor after brutal North Carolina homicide
Girl fights for her brother Jason Corbett’s honor after brutal North Carolina homicide

This story beforehand aired on Feb. 22, 2020. It was up to…

51 Min Read
2025 Summer time Guide Information: Discover your seashore reads right here
2025 Summer time Guide Information: Discover your seashore reads right here

Story first appeared in: Has studying books ever appeared extra important than…

23 Min Read

Oponion

Provides arrive by aircraft and by mule as Helene’s loss of life toll climbs

Provides arrive by aircraft and by mule as Helene’s loss of life toll climbs

Widespread devastation left behind by Hurricane Helene got here to gentle Monday…

October 1, 2024

UBS Should Pay Its $2 Billion Fine and Move On

UBS has lost its appeal against…

December 13, 2021

Hoda Kotb Says 5-12 months-Outdated Daughter Satisfied Her to Give up ‘Right now’ Present

As you’ve most likely heard by…

January 8, 2025

Speaker Mike Johnson wins GOP nomination to stay in job, faces full Home vote in new yr

By LISA MASCAROWASHINGTON (AP) — Rep. Mike…

November 13, 2024

CEO reacts to tariff-induced inventory plunge dwell throughout earnings name: ‘Oh, s—‘

RH CEO Gary Friedman reacted to…

April 3, 2025

You Might Also Like

Elon Musk’s return drives Tesla inventory surge in Might
Markets

Elon Musk’s return drives Tesla inventory surge in Might

As President Donald Trump thanked Elon Musk for his service to DOGE, he additionally highlighted what he described as his…

5 Min Read
EV tax credit score elimination: What it may imply for Tesla and the US auto trade if it ends
Markets

EV tax credit score elimination: What it may imply for Tesla and the US auto trade if it ends

Automotive knowledgeable Lauren Repair mentioned discusses the affect that the One Huge Lovely Invoice Act may have on Tesla. The…

5 Min Read
Boeing paying .1B as DOJ dismisses prison fraud case; households of victims in crashes set to object to deal
Markets

Boeing paying $1.1B as DOJ dismisses prison fraud case; households of victims in crashes set to object to deal

President Donald Trump chosen the aerospace large to construct the Subsequent-Era Air Dominance Platform, which he mentioned would be the…

5 Min Read
GM CEO backs Trump’s auto tariffs as a device to assist US producers
Markets

GM CEO backs Trump’s auto tariffs as a device to assist US producers

Basic Motors Chair and CEO Mary Barra discusses the impact of auto tariffs and constructing the enterprise on 'The Claman…

5 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?