Splunk to buy cloud software firm SignalFx in US$1 billion deal

Splunk to buy cloud software firm SignalFx in US$1 billion deal

REUTERS: Data analytics software maker Splunk Inc on Wednesday said it would acquire privately held SignalFx, which makes software for the cloud, in a cash and stock deal for about US$1.05 billion.

Splunk shares rose 7.4per cent to US$137.99 in extended trade.

Splunk hopes the deal will boost its capabilities by allowing its customers to use SignalFx products to monitor their data centres and applications in real-time.

"The acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale," Splunk's Chief Executive Officer Doug Merritt said in a statement.

He added the deal would give customers one platform that can monitor the "entire enterprise application lifecycle."

The company expects the deal, which is 60per cent cash and 40per cent in Splunk common stock, to close in the second half of fiscal 2020.

Separately, Splunk reported a second-quarter loss of US$100.87 million, compared with a loss of US$103.50 million last year, hurt by higher operating expenses.

(Reporting by Dominic Roshan K. L.; Editing by Bernard Orr)

Source: Reuters

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