Splunk to acquire SignalFx for roughly $1.05B
Splunk announced a definitive agreement to acquire SignalFx, a SaaS player in real-time monitoring and metrics for cloud infrastructure, microservices and applications. Under the terms of the agreement, Splunk will acquire SignalFx for a total purchase price of approximately $1.05B, subject to adjustment, to be paid approximately 60% in cash and 40% in Splunk common stock. The acquisition is expected to close in the second half of fiscal 2020, subject to customary closing conditions and regulatory reviews. "The strength of our balance sheet allows us to pay the majority of purchase price consideration with cash on hand. Total equity consideration plus initial SignalFx employee retention incentives will result in less than three percent total dilution from this transaction," said Jason Child, chief financial officer, Splunk. "Post-closing, we expect to absorb the acquired operational expenses of SignalFx within our existing plan. At this time, we are reaffirming our full year non-GAAP operating margin target," he continued.