San Francisco’s Splunk to acquire VictorOps in $120M deal

SAN FRANCISCO — Splunk Inc. (Nasdaq: SPLK), a San Francisco-based big-data platform company, has agreed to acquire VictorOps Inc., a Boulder-based tech company that specializes in full-stack operations for DevOps teams.

The deal is valued at approximately $120 million in cash and Splunk securities and is expected to close during Splunk’s fiscal second quarter, subject to customary closing conditions.

“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,” Doug Merritt, president and CEO of Splunk, said in a prepared statement. “This gives on-call technical staff an analytics-driven platform to monitor issues, resolve incidents and continuously improve. We are thrilled to welcome the VictorOps team to the Splunk family as we extend Splunk’s vision of using data as the backbone of IT.”

VictorOps had raised more than $35 million in private funding, including from Boulder-based The Foundry Group and Shea Ventures. The company employs about 100 in Boulder.

“We founded VictorOps to give teams a naturally collaborative way to quickly resolve incidents,” said Todd Vernon, CEO of VictorOps. “By combining VictorOps incident-management capabilities and the Splunk platform, organizations will be able to quickly resolve and even help prevent issues that degrade customer engagement. We look forward to joining Splunk and working together to help solve these complex challenges facing every development and DevOps team.”

Almost all of the VictorOps purchase price will be paid in cash, funded from Splunk’s balance sheet.

Splunk touts itself as turning “machine data into answers,” with organizations using Splunk solutions with machine learning to solve information-technology, Internet-of-Things and security challenges.