Splunk to acquire Cloud Monitoring startup SignalFx for $1.05 billion

Splunk announced the acquisition of Cloud Monitoring startup SignalFx for $1.05 billion. The financial transaction has approximately 60% in cash and 40% in Splunk common stock.

Founded in 2004, San Francisco headquartered Splunk provides operational intelligence software that monitors, reports, and analyzes real-time machine data for security, IT and the business. The company has raised a total of $40.9M in funding to date. SignalFx is Splunl's ninth acquisition

SignalFx is founded in 2013. The company is a provider of cloud monitoring platform for infrastructure, microservices, and applications. SignalFx has raised $178.5M till date in five funding rounds.

Executive Opinion

President and CEO, Splunk, 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."

Founder and CEO, SignalFx, Karthik Rau, said, "By joining Splunk, we will create a powerful monitoring platform - one ready to support CIOs whether they have fully embraced cloud or have existing applications in the data center. As the world continues to move towards complex, cloud-first architectures, 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 capitalize upon the modern application portfolio."

Significance of SignalFx acquisition

Cloud computing technologies like microservices, containers, Docker, Kubernetes, and serverless functions are driving business outcomes. The data volume is still growing rapidly and exponentially.
The combination of Splunk and SignalFx will create a data platform to monitor and observe data in real-time. The data platform will help IT professionals and developers, to cut costs, boost revenue and improve the customer experience, the announcement notes.

Once the acquisition is closed, Splunk claims to be a leader in observability and APM for organizations at every stage of their cloud journey, from cloud-native apps to homegrown on-premises applications.

The acquisition is expected to close in the second half of fiscal 2020 and subject to regulatory approvals.