On February 11, reports of a $20 billion-plus offer from Cisco Systems to Splunk Inc. (SPLK) emerged on The Wall Street Journal. Consequently, the stock rebounded and soared high in the after-hours on Friday.
At the close of the regular session, SPLK had a value of $114.51 with a loss of 2.76% on Friday. Following the emergence of the reports, the stock made a comeback in the after-hours to gain a good 11.30%. Hence, SPLK was trading at $127.45 apiece in the after-hours on Friday.
The software solutions provider, Splunk Inc. has a market capitalization of $18.18 billion. Currently, the company has 158.79 million shares outstanding in the market. SPLK stock lost 33.94% last year while it stands at a current year-to-date loss of a meager 1.05%.
What is Happening?
On Friday, WSJ reported that Cisco Systems has made a takeover offer for the company worth $20 billion-plus. The American multinational conglomerate corporation, Cisco Systems recently bought Acacia Communications for $5 billion. If the deal goes through, Splunk will be Cisco’s biggest acquisition as of yet.
WSJ further reported that while the offer is recent, the companies are not in active discussions about it. There is no guarantee of whether or not a deal will be closed. But the reports sure did make both the involved stocks rose in the after-hours on Friday.
SPLK’s Recent CEI Score
On February 01, the company announced receiving a score of 100 on the Human Rights Campaign Foundation’s 2022 CEI (Corporate Equality Index). This year has marked the second consecutive year for the company to be recognized as the best workplace for LGBTQ+ equality.
The CEI measures corporate policies and practices related to LGBTQ+ workplace equality and it’s the country’s foremost benchmark survey for it.
Chief Diversity Officer
On January 25, the company announced the appointment of Rolddy Leyva as Chief Diversity Officer. Leyva will be responsible for worldwide diversity, equity, and inclusion (DEI) and employee experience and will report to the Chief People Officer of SPLK, Kristen Robinson.
SPLK’s Financials
In the third quarter of 2021, SPLK had total revenues of $655 million, with a Total ARR of $2.83 billion. This marks respective growth of 19% and 37% year over year.
The company will be reporting its fourth quarter and fiscal 2021 financial results on March 2, 2022, after the bell.
