Splunk acquires SignalFx for $1.05B

In a bid to enable organizations to work across their entire data landscape, not just silos in the data center or cloud-native environments. Splunk, the publicly traded data processing and analytics company announced that, it has acquired SignalFx for a total price of about $1.05 billion. Approximately 60% of this will be in cash and 40% in Splunk common stock. The companies expect the acquisition to close in the second half of 2020.

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.

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, 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.

Indeed, the acquisition will likely make Splunk a far stronger player in the cloud space as it expands its support for cloud-native applications and the modern infrastructures and architectures those rely on.

Ahead of the acquisition, SignalFx had raised a total of $178.5 million, including a recent Series E round. Investors include General Catalyst, Tiger Global Management, Andreessen Horowitz and CRV. Its customers include the likes of AthenaHealth, Change.org, Kayak, NBCUniversal and Yelp.

According to Gartner, “by 2022, more than 75% of global organizations will be running containerized applications in production, which is a significant increase from fewer than 30% today.”** Customers will be able to use Splunk and SignalFx technology to deploy applications in the cloud, on-premises, or in hybrid environments and get real-time observability and response across all of these systems with a single interconnected platform.