BabbleLabs’ technology, powered by AI (Artificial Intelligence) and ML (Machine Learning), distinguishes human speech from unwanted noise resulting in enhanced speech quality in communications and conferencing applications. Rumors emerged from Street Insider last week that Cisco might be considering an acquisition of content delivery network provider Fastly. The figure exceeded Wall Street’s expectations, but FireEye also offered a mixed Q1 2020 outlook at the time, SeekingAlpha notes. Still, FireEye isn’t a fast-growth business, and it also leans quite a bit on a team of 1,000+ cybersecurity consultants — a labor cost that can’t generate SaaS-type valuations. Cisco announced the completion of the BabbleLabs acquisition. 17, 2020 10:46 AM ET Nutanix, Inc. (NTNX) By: Brandy Betz, SA News Editor 29 Comments. The majority of companies acquired by Cisco are based in the United States (U.S.) and a total of 149 companies have been acquired as of March 2011. Welcome to Cisco! A lot has happened since then. Cisco managed a GAAP gross margin of 63.6% in its latest quarter. The price tag on that deal was about 16 times AppDynamics' annual sales, and it was signed right before the company was set to go public at a lower $2 billion valuation. Most of the companies acquired by Cisco are related to computer networking, with several LAN switching and Voice over Internet Protocol (VoIP) companies included in the list of acquisitions. Tim writes about technology and consumer goods stocks for The Motley Fool. Poke around, and you’ll notice rumored Cisco-FireEye deals stretch back to 2015, when some pundits suggested a $9 billion buyout was on the way (only… it wasn’t). Big layoff in Cisco this Oct 2020. Your email address will not be published. Still, a number of rumors suggest Cisco will engage with Goldman Sachs on a deal for FireEye, according to SeekingAlpha. Rumors about Cisco Systems potentially acquiring FireEye are back. ChannelE2E is skeptical. Look for This Recovery in Cisco Stock to Carry Well into 2020. February 19, 2021. The company is valued at about $10 billion, or about 34 times the high end of its revenue guidance for 2020. Aperto, Airspan and Navini were all mentioned, though Alvarion and Redline were generally considered the frontrunners, since both already work quite closely with Cisco. News Release. I've weathered some questionable acquisitions as a Cisco shareholder, but a Fastly acquisition may be a bridge too far. Stock Advisor launched in February of 2002. Cisco. The main products include networking devices, networking management software, optical networking, storage area networks, wireless/telepresence, VOIP and datacenter products. Cisco reported fourth quarter revenue of $12.2 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.6 billion or $0.62 per share, and non-GAAP net income of $3.4 billion or $0.80 per share. Software in a variety of forms will be the focus for Cisco in 2020, and perhaps no area will be more important than its hybrid-cloud-interconnect strategy. Cisco has gone through multiple cycles during which its sales temporarily slumped, its longtime CEO was replaced, it shifted toward software and services, and it made some pretty big acquisitions. Fluidmesh extends Cisco’s industrial wireless offerings to industries with on-the-move assets and mission critical applications in situations where zero data loss is critical to uptime and business resiliency. SAN JOSE, Calif., Aug. 12, 2020 /PRNewswire/ -- Cisco today reported fourth quarter and fiscal year results for the period ended July 25, 2020. IMImobile brings key cloud communications software and communications platform as. A similar rumor in October 2019 suggested FireEye had hired Goldman Sachs to explore a company sale. Successful buyouts like AppDynamics, Duo and OpenDNS come to mind. As the proliferation of cloud-native apps continues to accelerate with the aim to transact business efficiently and securely from anywhere, the security landscape is … It would make sense for Cisco to aim to acquire software and cloud companies that could help boost its gross margin in the long run. At the right price, Fastly could be a reasonable acquisition for Cisco to make, profitability issues aside. I would not be at all surprised to see Cisco make an acquisition in this space in 2019,” Casemore added. The bigger problem, though, is the gross margin situation. The persistent rumors that Cisco is close to making a WiMAX infrastructure acquisition resurfaced at WiMAX World last month, with most of the independent WiMAX vendors in the frame. by Joe Panettieri • Feb 13, 2020 Rumors about Cisco Systems potentially acquiring FireEye are back, but ChannelE2E remains skeptical about the chatter. To meet the growing demand for wireless connectivity in the most challenging environments, Cisco is announcing its intent to acquire Fluidmesh Networks, a privately-held, New York-based leader in wireless backhaul systems. Springpath, Inc. - August 21, 2017. Cisco Completes Acquisition Of ThousandEyes PR Newswire SAN JOSE, Calif., Aug. 7, 2020 SAN JOSE, Calif., Aug. 7, 2020 /PRNewswire/ -- Cisco (NASDAQ: CSCO) … Nutanix (NASDAQ: NTNX) shares pop 9.1% to … Here's why. Nutanix +9% on The Information's acquisition speculation. Fast forward to present day. But for $10 billion or higher, it makes no sense at all. Cisco executives said current-quarter revenue could drop between 9% and 11% from last year, implying a range of between $11.71 billion and $11.97 billion, while analysts had expected $12.25 billion. Cisco's (CSCO) acquisition of Banzai Cloud is aimed to enhance the company's presence in the cloud space. The company paid $3.7 billion in 2017 for AppDynamics, an application performance management software provider, adding to its portfolio of software solutions. ThousandEyes Internet and Cloud Intelligence platform expands visibility, insights, and action into digital delivery of applications and services over the internet and cloud. That's right: This high-flying cloud company has a lower gross margin than stodgy hardware company Cisco. No doubt, Cisco is pushing hard into cybersecurity. Every company in the Fortune 100 now uses one or more Cisco security solutions, Robbins added during that earnings call. multi-cloud container security capabilities, there’s no truth to the Cisco-FireEye rumor, MSP 200: Top 200 Public Cloud MSPs for AWS, Microsoft Azure & Google, Technology Mergers and Acquisitions: Deal List. But ChannelE2E doesn’t think FireEye fits into Cisco’s typical company profile for acquisition targets. It would take a really bad acquisition for me to consider dumping my shares. FireEye’s market capitalization is a far less frothy $3.53 billion, though shares jumped about 5 percent today on the latest M&A rumors. Shares of Fastly have had quite a run this year, although the stock has slumped hard from its all-time high. Cisco Completes Acquisition of IMImobile PLC. Cisco more or less does annual layoffs. FireEye’s revenue was $235 million in Q4 2019, up 8 percent from Q4 2018, the company said on February 5, 2019. All things considered, I think Cisco is still a great stock to own. However, investors should not be basing any decisions around a possible Cisco acquisition — a rumor with no base — and should instead focus on Fastly’s fundamentals. Fluidmesh’s leading technology will compliment Cisco’s robust industrial wireless portfolio, providing reliable and resilient wireless solutions for mission … Cisco today reported fourth quarter and fiscal year results for the period ended July 25, 2020. December 7, 2020, Cisco announced that it would be acquiring Slido to improve Q&A, polls and engagement in WebEx videoconferencing . The company designs, makes and sells networking equipment and software. Meanwhile, Cisco’s overall security revenue rose 9 percent in the company’s most recent quarter with strong performance in identity and access, advanced threat and unified threat management areas, CFO Kelly Kramer told Wall Street analysts during an earnings call yesterday. On August 7, 2020 Cisco completed the acquisition of ThousandEyes Inc., a privately held company headquartered in San Francisco, CA. Meanwhile, FireEye is respected in the cybersecurity market, and the company’s software portfolio contains some compelling offerings. Cumulative Growth of a $10,000 Investment in Stock Advisor, If Cisco Does This, I'd Consider Selling the Stock @themotleyfool #stocks $CSCO $FSLY, paid $3.7 billion in 2017 for AppDynamics, 5 Reasons to Stick With Cisco After Its Soft Second-Quarter Report, Cisco Systems (CSCO) Q2 2021 Earnings Call Transcript, Copyright, Trademark and Patent Information. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. You can also subscribe without commenting. Market data powered by FactSet and Web Financial Group. Fastly stock is up over 330% year-to-date, but down about a third from its peak. The loss of revenue from TikTok is part of the problem, but the company also warned in October that it was seeing lower-than-expected platform usage from some of its other customers. News Summary: Cisco completed the acquisition of Acacia Communications, Inc. following approval of the transaction by a majority of Acacia shareholders. Fastly shares have rallied more than 23% over the last four trading days amid rumors that the company could be an acquisition target for Cisco Systems… It would be getting a relatively slow-growing company, at least in the world of high-flying cloud stocks. Source: Ken Wolter / Shutterstock.com. PS: Barron’s agrees with ChannelE2E’s assessment, reporting that there’s no truth to the Cisco-FireEye rumor. Fastly is an expensive stock. Fastly stock soared on Cisco acquisition chatter; Piper Sandler says deal isn't likely Dec. 07, 2020 8:46 AM ET Cisco Systems, Inc. (CSCO) By: Brandy Betz , SA News Editor 32 Comments The lineup includes a digital threat monitoring service, and multi-cloud container security capabilities. Cisco's (CSCO) Acquisition of Banzai Cloud: Major Takeaways - November 17, 2020 - Zacks.com Cisco, Open Systems and NetApp have initiated or closed acquisitions since the 2020 Coronavirus pandemic hit the technology industry. Springpath has developed a distributed file system purpose-built … Each additional unit of hardware sold carries substantial costs, while each additional unit of software sold costs little. As some of you may have heard through Twitter or Google Alerts, there is a rumor out that Cisco intends to acquire Meraki. But Fastly does not have the same economics as your typical software company because it must pay for bandwidth, peering, and colocation for its services. It was strange, and it didn't sit well with me. I hope the rumors aren't true, but Fastly (NYSE:FSLY) could be that really bad acquisition. Nasdaq traders bid up Citrix stock Tuesday on takeover rumors that have either IBM or Cisco purchasing the application delivery vendor. Follow him on Twitter: This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. The company warned in its S-1 filing that its cost of revenue as a percentage of total revenue might increase in the future, which would push down its gross margin. Notify me of followup comments via e-mail. The reason: FireEye’s business model, revenue mix and growth rate don’t fit the typical Cisco M&A target profile, ChannelE2E believes. Cisco dances in the cloud. Your email address will not be published. October 1, 2020, Cisco announced that it would be acquiring Israeli startup Portshift for a reported $100 million. Cisco is still primarily a hardware company, and hardware typically isn't as profitable as software. Also of note: FireEye’s direct sales force and security consulting services have caused channel partner conflict from time to time — a reality that Cisco partners may not welcome. We’re motley! Fastly is an expensive stock. While Zoom continues to hold a lot of mindshare (and market share) in the world of videoconferencing, Cisco’s WebEx division today announced an acquisition … 10/26/2020 Update: We have completed the acquisition of Portshift. For this reason, I am pleased to announce the acceleration of this evolution through Cisco’s acquisition of Modcam, a privately held, video analytics company headquartered in Malmӧ, Sweden. News Summary: Cisco has completed the acquisition of IMImobile PLC. The company has a dominant share of the networking hardware market, and that hasn't really been threatened by lower-cost competition and the rise of cloud computing. The reason: FireEye’s business model, revenue mix and growth rate don’t fit the typical Cisco M&A target profile, ChannelE2E believes. If that changes, we’ll be sure to update this blog. All contents © 2021 ChannelE2E and After Nines Inc. Cisco Systems, Inc. is a large advanced technology company with the main office located in San Jose, California. March 01, 2021. I have no internal knowledge but if you're planning to work for Cisco you better get used to this. Under CEO Chuck Robbins, many of Cisco’s recent acquisitions involved fast-growth, pure SaaS or cloud-intensive companies. Last Thursday, FireEye's (NASDAQ:FEYE) stock price jumped by more than 6% during trading hours on rumors Cisco Systems (NASDAQ:CSCO) would acquire the cybersecurity specialist. He's a value investor at heart, doing his best to avoid hyped-up nonsense. SAN JOSE, Calif. – July 7, 2020 – Cisco (NASDAQ: CSCO) today announced it has completed the acquisition of Fluidmesh Networks, a leader in resilient wireless backhaul systems. This month, Cisco unveiled its plan to buy artificial intelligence and machine learning specialist MindMeld for $125 million, as well as software-defined WAN vendor Viptela for $610 million. The company is valued at about $10 billion, or about 34 times the high end of its revenue guidance for 2020. Returns as of 04/12/2021. SD-WAN has arrived The next big 2019 focus area for Cisco … And growth is slowing: Backing out some extra revenue Fastly expects from an acquisition, sales are expected to grow by just about 25% in the fourth quarter. But is the networking giant really looking to buy the cybersecurity & consulting firm? Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Fastly's gross margin, by the way, was just 58.5% in its latest quarter. As for the FireEye rumor, ChannelE2E has not heard any definitive chatter suggesting that Cisco is preparing to acquire the company. Rumors about Cisco Systems potentially acquiring FireEye are back, but ChannelE2E remains skeptical about the chatter. Cisco Systems Inc. is in advanced talks to buy software company ThousandEyes Inc. for nearly $1 billion, according to people familiar with the matter. Cisco Systems could buy Splunk or Nutanix and return to an acquisition spree that targets software companies, says an RBC Capital analyst.Cisco stock edged … Cisco Completes Acquisition of IMImobile PLC. December 7, 2020, Cisco announced the acquisition of U.K based IMImobile in a $730M deal. Our original plan had been to break the news to everyone tomorrow before it was officially announced, but it looks like social media beat us to it! Required fields are marked *. I've owned shares of networking hardware giant Cisco Systems (NASDAQ:CSCO) since 2012. Jul. In acquiring Modcam, Cisco is investing in a team of highly talented engineers who bring a wealth of expertise in machine learning, computer vision and cloud-managed cameras. If Cisco were to buy Fastly, it would likely have to pay a premium on top of an already exorbitant price. One of the upsides of Cisco's ongoing shift toward software is the potential for margin expansion, after all. Save my name, email, and website in this browser for the next time I comment. Guiding VARs, MSPs, CSPs, Total Service Providers (TSPs) s & Strategic IT Service Providers: From Entrepreneur to Exit. With communications and commerce increasingly moving to digital channels, demand for edge-computing services looks primed for substantial growth over the next decade and Fastly has a leading position in the space. I haven't liked all of Cisco's acquisitions.
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