Splunk is snapping up SaaS cloud monitoring service SignalFx, with the aim of becoming ‘a leader in monitoring and observability’.
On Wednesday (21 August), Splunk, the data processing and analytics software company, announced that it will acquire SaaS cloud monitoring service SignalFx in a $1.05bn deal.
In a statement, the company said: “Splunk is already a leader in IT [operations management] and an AIOps pioneer and, upon close, will be a leader in observability and [application performance management] for organisations at every stage of their cloud journey, from cloud-native apps to homegrown on-premises applications.
“This breadth of innovation will help customers deliver cost savings, increased revenue and an improved customer experience.”
Disclosing some terms of the acquisition, Splunk said it will acquire SignalFx for a total purchase price of approximately $1.05bn, subject to adjustment. This will be paid 60pc in cash and 40pc in Splunk common stock. The deal will close in the second half of the 2020 fiscal year, subject to the usual closing conditions and regulatory reviews.
Prior to the deal, SignalFx had raised $75m in its Series E funding in June. It’s estimated that the company has raised a total of $178.5m since it exited stealth in 2015. After the latest funding round, SignalFx was valued at $500m, according to Forbes.
Splunk made the announcement while publishing its second-quarter financial results, which were better than expected.
The company’s CEO, Doug Merritt, said: “Data fuels the modern business and the acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale.
“SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application lifecycle. We are also incredibly impressed by the SignalFx team and leadership, whose expertise and professionalism are a strong addition to the Splunk family.”
Karthik Rau, founder and CEO of SignalFx, added: “As the world continues to move towards complex, cloud-first archiectures, Splunk and SignalFx is the new approach needed to monitor and observe cloud-native infrastructure and applications in real time, whether via logs, metrics or tracing. The SignalFx team is thrilled to join Splunk to help CIOs capitalise upon the modern application portfolio.”