[ad_1]
Technology conglomerate Cisco Systems is in talks to acquire software company Splunk, although no deal is currently on the table, tech conglomerate Cisco Systems told The New York Times on Friday.
A deal may never materialize, but Cisco could pay more than $20 billion for Splunk if talks continue, one of the people said.
Splunk, whose stock price has fallen 30 percent since CEO Doug Merritt unexpectedly withdrawn As of November, it has a market cap of about $18 billion. Cisco’s market capitalization is $227 billion.
People asked for anonymity as the information is confidential. Cisco did not immediately respond to a request for comment, while a Splunk spokesperson said the company did not comment on rumors or speculation. Wall Street Journal reported potential deal Early on Friday.
Named after the sport of cave exploration, caving, Splunk mines data for insights, including on security threats, a job of increasing importance as the coronavirus pandemic quickly forces many workers to go online. recently called transition to cloud computing and catch up with competitors like Datadog, which started their business in the cloud. In June, private equity firm Silver Lake invested 1 billion dollars On Splunk to help with this transition.
Cisco is known as a serial buyer that actively uses acquisitions as a complement to research and development. Its past deals include Acacia, an optical network components manufacturer; Luxtera, a semiconductor company; and ThousandEyes, a cloud intelligence company. CEO Chuck Robbins told analysts in December that Cisco will continue to seek acquisitions in security.
Technology has become a hotbed of M&A activity over the past year, as rising stock prices have flooded companies with cash. Microsoft aforementioned last month, it plans to acquire video game company Activision Blizzard for approximately $70 billion, and announced Salesforce. Acquired workplace software company Slack for $27.7 billion last year.
[ad_2]
Source link