Stock Groups

Splunk shares spike on report of Cisco buyout offer

[ad_1]

Chuck Robbins CEO of Cisco Systems speaks at the World Economic Forum Davos Switzerland 21 January 2020.

SplunkShares rose by as high as 14% on Friday in extended trading after Wall Street Journal reports. CiscoThe company’s data analytics software was offered for purchase at a price of more than $20 billion.

Splunk’s after-hours value was more than $20 Billion, an increase of $18.2B.

Splunk did not respond to requests for comment. Cisco representatives did not respond immediately to inquiries for comment.

Splunk software is popular for its ability to detect security threats. Cisco has been looking to grow its security business, while simultaneously selling Webex collaboration and data center software.

The shares of Splunk fell 49% after reaching record levels in September 2020. On Nov. 15, Splunk’s stock dropped 18% after it was acquired by another company. saidDoug Merritt (CEO), who was in charge of the business for six-years, will step down as CEO immediately. After naming Chairman Graham Smith interim CEO, the board began a search to find a permanent successor.

Splunk said that it is moving towards cloud-based services for customers. In December, 37% of its revenue came from cloud use.

The Splunk total revenue increased 19% compared to a year ago, while Cisco’s quarterly overall revenue rose 8%. Cisco is a long-standing company that has grown through acquisitions. In 2020, it purchased ThousandEyes Network Monitoring Company. about $1 billion.

Splunk would make Cisco the largest deal ever.

Read the Wall Street Journal report here.

[ad_2]