Splunk acquires SignalFx for $ 1.05 billion



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Splunk Wednesday released second-quarter financial results better than expected and announced plans to acquire the $ 1.05 billion cloud monitoring company SingalFx – its largest acquisition to date. Splunk CEO Doug Merritt said the purchase would allow Splunk to offer its customers a single data platform that can monitor cloud infrastructure and enterprise applications in real time.

"The combination of Splunk and SignalFx will provide IT professionals and developers with a data platform that allows them to monitor and observe data in real time, regardless of the level of infrastructure or volume of data. data, thereby enabling them to reduce costs, increase revenues and improve customer experience, "said Splunk said in a press release.

"This allows organizations to work across their entire data landscape, not just silos in the data center or in cloud environments."

In terms of numbers, the computer data software provider reported a net quarterly loss of $ 100.8 million, or 67 cents per share. Splunk's non-GAAP earnings reached 30 cents per share for a 517 million dollar business, up 33% from the same period last year.

Wall Street expected earnings per share of 12 cents per share for sales of $ 488.35 million. Splunk shares rose more than 6% after hours.

Elsewhere in the balance sheet, Splunk said software revenues rose to $ 350 million, up 46% from one year to the next. The company also landed more than 500 new corporate clients in the second quarter.

In terms of outlook, analysts expect earnings per share of 52 cents for a business turnover of $ 590.52 million. Splunk has responded above the target, claiming a turnover of $ 600 million for the third quarter. Splunk also raised its forecast for the fiscal year to about $ 2.30 billion.

Splunk announced that the acquisition of SignalFx would be finalized during the second half of its current fiscal year. With its $ 1.05 billion selling price, the acquisition is significantly larger than any recent acquisition of Splunk. Last June, the company bought VictorOps, a DevOps incident management player, for $ 120 million. The agreement comes months after Pellom's $ 350 million purchase of Splunk's security orchestration platform.

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