Splunk Inc. announced on Monday a definitive agreement to acquire VictorOps Inc., vendor of DevOps incident management. Under the terms of the agreement, Splunk will acquire VictorOps for a total purchase price of approximately $120 million, subject to adjustment, to be paid in cash and Splunk securities.
The acquisition is expected to close during Splunk’s fiscal second quarter, subject to customary closing conditions.
Global customers are demanding digital experiences that place a burden on development teams to innovate faster than ever before; however, challenges such as vague alerts, reactive operations and siloed teams often get in the way of delivering high-quality customer engagements and fully embracing an IT strategy fueled by AIOps.
To combat this, organizations are increasingly turning towards artificial intelligence (AI) and machine learning (ML) solutions to help them focus on critical aspects of the customer experience. By applying ML and AI to monitoring, event management and incident management data, Splunk and VictorOps will enable DevOps teams to speed resolution and learn from past actions to make proactive recommendations.
Thousands of customers use Splunk Enterprise to proactively monitor, visualize and get answers from their machine data. The combination of Splunk Enterprise and VictorOps will deliver a ‘Platform of Engagement’– combining monitoring, event management, on-call management and ChatOps. Ultimately, this enables modern engineering and operations teams to quickly solve problems in high-velocity deployment environments to maximize customer success.
Nearly all of the purchase price consideration will be paid in cash, funded from Splunk’s balance sheet.
“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,” said Doug Merritt, President and CEO, Splunk. “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.”
“We founded VictorOps to give teams a naturally collaborative way to quickly resolve incidents,” said Todd Vernon, CEO, 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.”