Splunk To Buy Cloud-Monitoring Software Maker SignalFx For $1.05 Billion (wsj.com) 6
Splunk Inc. reached a $1.05 billion deal to buy cloud-monitoring startup SignalFx Inc., a deal that would strengthen the cybersecurity and data-analytics firm's offerings in the fast-growing cloud-computing sector. The Wall Street Journal reports: Founded in 2004, Splunk -- a play on the word "spelunking" -- collects and analyzes data to help companies identify patterns, like customers' beverage preferences, and detect anomalies, say fraud or a cyberattack. Splunk officials told analysts that Splunk has some customer overlap with San Mateo, Calif.-based SignalFx and that the target company's software represents a "top tier asset to the things that matter" to clients. Closely held SignalFx was valued at nearly $500 million after a $75 million funding round that closed in May, according to a Dow Jones VentureSource estimate.
The cash-and-stock deal is expected to close in the second half of Splunk's fiscal year, which ends Jan. 31. San Francisco-based Splunk, which went public in 2012 and carries a nearly $1.5 billion deficit, said it would be able to absorb the added operating costs from the deal. Splunk has been increasing its cloud business, which accounted for 25% of revenues in the July quarter and is expected to represent half of operations over the next few years, company officials said.
The cash-and-stock deal is expected to close in the second half of Splunk's fiscal year, which ends Jan. 31. San Francisco-based Splunk, which went public in 2012 and carries a nearly $1.5 billion deficit, said it would be able to absorb the added operating costs from the deal. Splunk has been increasing its cloud business, which accounted for 25% of revenues in the July quarter and is expected to represent half of operations over the next few years, company officials said.
Betting on the Come I see. It's 1999 again. (Score:2)
So Splunk has a operating loss of nearly $90M last quarter (ended July 31) and negative cash flow of $140M thereabouts. Jason Child was named CFO of the Year. Go figure.
But they signed 500 new enterprise customers so maybe they are on to something. Not bad for what amounts to a program that eats syslog files.
One other thing that this made me remember. I was at Black Hat the week before last and noticed that NOBODY was hyping "AI" and "Machine Learning." The words are still in their trade lite
Re: (Score:1)
Splunk: the first Flash ad I saw on Slashdot (Score:2)
The only reason I know of Splunk is that Splunk was the first company to place Flash ads on Slashdot. The distraction caused by the animation in these ads led to my interest in blocking "rich media" ads in the first place. Flash click-to-play extensions worked for many years until the iPad had to ruin it by extending the "SWF-free by default" zone to screens larger than 5 inches.
I've never heard of Splunk yet they have so much (Score:2)