Cisco-Splunk deal seen as 'positive' for Elastic, could lead to more M&A: Citi
Parradee Kietsirikul

Cisco's (CSCO) proposed deal to acquire Splunk (SPLK) for $28B in cash is seen as a "positive" for software company Elastic (NYSE:ESTC) and could result in additional acquisitions across the space, Citi said on Monday.
A team of analysts noted that Elastic (ESTC) is likely to benefit given that Splunk (SPLK) is growing slower than Elastic and could result in a "competitive dislocation" once the Cisco-Splunk closes.

With regards to potential acquisitions, Citi said that Alteryx (NYSE:AYX) and Braze (NASDAQ:BRZE) could also be acquired, as large cap companies such as IBM (IBM), Salesforce (CRM) and potentially even Adobe (ADBE) and Microsoft (MSFT) go "on the offensive" due to concerns about slowing IT budgets and headwinds caused by the global economy.
The analyst added that the larger companies have also accumulated large amounts of cash as they have improved margins and beenfited from higher interest rates.
Elastic (ESTC), Alteryx (AYX) and Braze (BRZE) were little changed in pre-market trading on Monday.


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