Splunk has announced that it will acquire the cloud monitoring company SignalFX for $1.05bn, in its largest acquisition to date.
According to Splunk's CEO Doug Merritt, the purchase will enable the company to provide its customers with a single data platform capable of monitoring cloud-native infrastructure and enterprise applications in real time.
In a press release announcing the acquisition, Splunk explained how the combination of the two companies will allow organizations to work across their entire data landscape, saying:
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“The combination of Splunk and SignalFx will give IT and developers a data platform that allows them to monitor and observe data in real time, no matter the infrastructure or data volume, helping them cut costs, boost revenue and improve the customer experience. This enables organizations to work across their entire data landscape, not just silos in the data center or cloud-native environments.”
Splunk financial results
In addition to announcing its plans to acquire SignalFX, Splunk also revealed that its second quarter financial results had managed to beat Wall Street's expectations.
The company reported a quarterly net loss of $100.8m (67 cents per share) and its non-GAAP earnings came to 30 cents per share on revenue of $517m which is up by 33 percent from the same period last year. Wall Street expected earnings of 12 cents per share on revenue of $488.35m and the good news led to Splunk's shares being up more than six percent after hours.
Splunk also reported that its software revenues for the second quarter came to $350m representing a 46 percent increase year-over-year. The company was even able to land over 500 new enterprise customers during Q2.
Splunk's acquisition of SingalFX is expected to close in the second half of its current fiscal year following regulatory approval.
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