I just received proxy ballots to approve the merger between Elastic and Endgame. I have read the prospectus and am not sure i understand the significance. I am usually leery of mergers. History has shown that they are typically expensive and don’t add that much to the parent company’s bottom line.
I just received proxy ballots to approve the merger between Elastic and Endgame. I have read the prospectus and am not sure i understand the significance. I am usually leery of mergers. History has shown that they are typically expensive and don’t add that much to the parent company’s bottom line.
Can any one hello me understand this merger?
Thanks Gordon
I think all you have to do is look at Splunk and their $2B of high margin revenue. Elastic wants compete with Splunk in security incident event management. You need a very large set of documents in order to extract malicious behavior features. They have their core product as a distributed document store. They can build the machine learning algorithm classifiers. What they do not have is a source of existing and fresh documents from live attacks. Endgame is a security endpoint product, among other things. There were only so many available ones on the market, and Elastic chose pretty well.
So they want to build and train an AI security product and need data and customers.
Thanks. I had missed these earlier. I have to say that Shay, at least in the Citi transcript comes off as one lousy communicator. Wow. He did such a poor job describing to lay people what his company does.