Comprehensive M&A data with integrated detailed company information
Splunk to acquire VictorOps
Posted on Tuesday, 12 June 2018 13:46
Splunk has reached an agreement to purchase US-based development operations (DevOps) incident management group VictorOps for USD 120.00 million.
The company is hoping the addition of the target will help create a collaborative, analytics-driven platform.
Splunk, which turns machine data into answers to assist organisations in Internet-of-Things (IoT) and security challenges, is expecting the deal to complete in the second quarter of its financial year, subject to the usual raft of conditions.
Doug Merritt, chief executive of the acquiror, said: “The combination of machine data analytics and artificial intelligence from Splunk with incident management from VictorOps creates a ‘platform of engagement’ that will help modern development teams innovate faster and deliver better customer experiences.”
The consideration will mainly be in the form of cash and will be funded from the buyer’s balance sheet.
Splunk observed that digital experiences are in high demand from customers, which places a burden on development teams to work faster and to a tighter deadline, although challenges including vague alerts and reactive operations are causing a barrier for such firms to provide high-quality customer engagements.
As a solution to this, businesses are turning towards artificial intelligence and machine learning and applying these capabilities to monitoring, event management and incident management data.
VictorOps was founded in 2012 and has raised more than USD 33.00 million in funding, including USD 15.00 million in its latest round of financing in December 2016.
Established in 2003, Splunk has already announced one other deal in 2018 to date as it agreed to pay USD 350.00 million for Phantom Cyber, a US-based online enterprise cyber security platform, in a transaction expected to complete at the end of this month.
The group, which had a market capitalisation of USD 16.97 billion, recorded total revenues of USD 311.60 million, up 37.0 per cent year-on-year, on a net loss of USD 118.50 million in the three months to 31st March 2018.
© Zephus Ltd