REUTERS: Data analytics software maker Splunk Inc on Wednesday said it would acquire privately held SignalFx, which makes cloud software, in a $ 1.05 billion cash and stock deal.
Splunk shares rose 7.4 percent to US $ 137.99 in expanded trading.
Splunk hopes the deal will increase its capabilities by allowing customers to use SignalFx products to monitor their data centers and applications in real time.
acquisition of SignalFx puts Splunk in the lead in massive surveillance and observability, "Splunk's CEO Doug Merritt said in a statement.
He added that the agreement would provide customers with a platform that can monitor the entire business application life cycle. "
The company expects the agreement, which is 60 percent cash and 40 percent in Splunk common stock, to close in the second half of fiscal 2020.
Splunk reported separately on a loss in the second quarter of $ 100.87 million compared to a loss of $ 103.50 million last year, hurt by higher operating expenses.
(Reporting by Dominic Roshan K. L .; Editing by Bernard Orr)