Splunk sold for $28 billion

Cisco to acquire Splunk for $157 per share in cash, or $28B EV

Cisco (CSCO) and Splunk (SPLK) announced a definitive agreement under which Cisco intends to acquire Splunk for $157 per share in cash, representing approximately $28B in equity value.

Upon close of the acquisition, Splunk President and CEO Gary Steele will join Cisco’s Executive Leadership Team reporting to Chair and CEO Chuck Robbins.

The transaction is expected to be cash flow positive and gross margin accretive in the first fiscal year post close, and non-GAAP EPS accretive in year two.

Additionally, it will accelerate Cisco’s revenue growth and gross margin expansion.

The transaction will not impact Cisco’s previously announced share buyback program or dividend program.

The acquisition has been unanimously approved by the boards of directors of both Cisco and Splunk. It is expected to close by the end of the third quarter of calendar year 2024, subject to regulatory approval and other customary closing conditions including approval by Splunk shareholders.

Splunk Inc, develops and markets cloud services and licensed software solutions in the United States and internationally. The company offers unified security and observability platform, including Splunk Security that helps security leaders fortify their organization’s digital resilience by mitigating cyber risk and meeting compliance requirements; and Splunk Observability, which provides visibility across the full stack of infrastructure, applications, and the digital customer experience.

SPLK is up 21% to $144.74. CSCO is down 4% to $53.25.

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Burford Capital Shares Soar on it’s Court Victory

Argentina ordered to pay at least $8.4B in YPF suit with claims owned by Burford

Argentina was ordered to pay at least $8.4B in damages in a U.S. lawsuit over its 2012 re-nationalization of state oil company YPF SA (YPF) in an order issued by U.S. District Judge Loretta Preska in the U.S. District Court for the Southern District of New York.

The judge awarded the amount to entities backed by litigation funder Burford Capital (BUR), which acquired the right to pursue the claims for $16.6M in 2015.

The decision states in addition: “The Court also rejects the Republic’s effort to inject Burford Capital into these proceedings. This remains a case brought by plaintiffs against a defendant for its wrongful conduct towards them, and the relevant question is what the Republic owes Plaintiffs to compensate them for the loss of the use of their money, not what Plaintiffs have done or will do with what they are owed. The Republic owes no more or less because of Burford Capital’s involvement.”

Judge Loretta Preska

“Argentina has already pledged to appeal, which will likely delay payment for months or even years, but could also complicate its efforts to return to global debt markets,” according to Bloomberg’s reporting on the decision that was posted to the court’s website.

Burford Capital Limited (BUR) provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance.

YPF Sociedad Anónima engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, natural gas, and NGLs. The company’s downstream operations include the refining, marketing, and distribution of oil and petroleum products.

YPF is up 1% to $13.28. BUR is up 20% to $16.70.

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