Splunk's software collects data logs and can give an enterprise added insight into operations, security, and application performance. Silver Lake Chairman and Managing Partner Kenneth Hao will also join Splunk's board of directors to help guide the company's journey. Concurrent with Silver Lake's investment, Splunk said it will also begin executing a new $1 billion share repurchase plan (which should help offset any future conversion of the debt into new stock). Splunk, for its part, plans to use the cash to continue to transform its business for the cloud era. Silver Lake obviously sees upside for Splunk stock and will collect a meager amount of interest along the way for its convertible debt stake in the company. As a reminder, debt converted into new stock dilutes ownership for existing shareholders. At the time of the announced deal, that was some 30% above where Splunk stock was trading, although shares jumped nearly 10% higher on the news. The initial conversion price is $160 per share. The notes have an annual interest rate of just 0.75% per year payable to Silver Lake, and they mature in July 2026 if they haven't been repurchased or redeemed by then. Silver Lake's investment is via convertible notes, debt that can be turned into new stock later on. Splunk's $1 billion cash windfall gets it access to some cheap capital - at least cheap in the short-term. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.Image source: Getty Images What's to be done with $1 billion? For more information, contact us.īerger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. Whistleblowers: Persons with non-public information regarding Splunk are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. You do not need to be a lead plaintiff to share in any potential Class recovery. The lead plaintiff appointment deadline is February 2, 2021. If you purchased Splunk securities during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. Analysts at JPMorgan immediately wrote that they were "blindsided by the magnitude of too many large deals slipping in the final days of October." On December 2, 2020, Splunk announced its third quarter 2021 financial results, and in a startling reversal from the optimistic portrayal of the Company only five weeks earlier, Splunk reported that total revenue had declined by 11% year-over-year and that earnings-per-share had missed analyst estimates by a wide margin. Specifically, according to the complaints, Defendants failed to disclose that Splunk was not closing deals with its largest customers in the third fiscal quarter of 2021, and that Splunk was not hitting the financial targets it had previously announced. If you purchased Splunk securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at or (215) 875-3015, or Donnell Much at or (215) 875-4667, or contact us at Recently filed lawsuits accuse Splunk and members of its senior management of falsely portraying the Company's financial performance, including its business, operations, and prospects. ("Splunk" or the "Company") has been expanded to include investors who purchased Splunk securities (NASDAQ: SPLK) between Augand Decem(the "Class Period"). 14, 2021 /PRNewswire/ - Berger Montague's ongoing investigation into potential securities fraud claims against Splunk, Inc.
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