Software company Splunk Inc. (NASDAQ: SPLK) announced the acquisition of the SaaS company SignalFix for $1.05 billion Wednesday in conjuction with its second-quarter report.
The deal is comprised of about 60% cash and 40% Splunk common stock, the company said in a press release. The deal is expected to close in the second half of fiscal 2020, subject to customary closing conditions and regulatory review.
"SignalFx will support our continued commitment to giving customers one platform that can monitor the entire enterprise application lifecycle," Splunk President and CEO Doug Merritt said in a statement.
33% Year-Over-Year Revenue Increase
The company reported second-quarter adjusted EPS of 30 cents against a 12-cent estimate and sales of $517 million versus a $488.35-million estimate.
Revenue increased 33% year-over-year.
Splunk reported an operating cash flow of negative $129 million and negative free cash flow of $141 million.
The company said it signed almost 500 new enterprise customers.
Splunk guided to third-quarter revenue of approximately $600 million and a non-GAAP operating margin of about 16%.
The company raised its full-year fiscal 2020 revenue guidance from $2.25 billion to $2.3 billion.
The stock was trading higher by 4.51% to $134.25 in Wednesday's after-hours session.
Checks Indicate Continued Momentum At Splunk, Wedbush Says
'Compelling Asset': Splunk Analysts Bullish After Software Company's Q1, But Investors Pull Back
Photo courtesy of Splunk.
See more from Benzinga
- Trulieve: Availability Of Flower Boosted Florida's Medical Marijuana Market In Q2
- Canopy Growth Investors Pull Back As Losses Widen In Q1; CBD Products Coming To US Market
- 'We Are Pursuing Every Opportunity Available To Us': cbdMD Posts 42% Sequential Net Sales Increase In Q3
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.