Splunk Inc. is an American public multinational corporation based in San Francisco, California. It produces software for searching, monitoring, and analyzing machine-generated big data, via a Web-style interface.
Splunk captures, indexes, and correlates real-time data in a searchable repository from which it can generate graphs, reports, alerts, dashboards, and visualizations.
SignalFx, on the other hand, is a SaaS-based monitoring and analytics platform based in San Mateo, California. The company allows customers to analyze, visualize, automate, and alert on metrics data from infrastructure, applications, microservices, containers, and functions.
The said acquisition will help customers deliver cost savings, increased revenue and better customer experience. With Splunk’s mission to make machine data accessible across an organization, the acquisition also brings Splunk the most qualified company to deliver outcomes across the entire suite of an enterprise.
“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,” said Doug Merritt, President and CEO of Splunk.
“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.”
Splunk and SignalFx are already working closely together. According to Merritt, the acquisition will let the two companies work at a more direct, and detailed level.
Founder and CEO of SignalFx, Karthik Rau also commented on the matter. “By joining Splunk, we will create a powerful monitoring platform – one ready to support CIOs whether they have fully embraced the cloud or have existing applications in the data center,” he said.
“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,” Rau added.
The acquisition is expected to close in the second half of 2020. Under the terms of the agreement, Splunk will buy SignalFX for a massive amount of $1.05 billion but said that the price is still subject to adjustment. Splunk will be paying 60% in cash and 40% in common stock.