Ushers New Age of Analytics-Driven Security and IT with Addition
of Security Orchestration Automation and Response
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 27, 2018--
Inc. (NASDAQ: SPLK), first in delivering “aha” moments from machine
data, today announced a definitive agreement to acquire Phantom Cyber
Corporation, a leader in Security Orchestration, Automation and Response
(SOAR). Under the terms of the agreement, Splunk will acquire Phantom
for a total purchase price of approximately $350 million, subject to
adjustment, to be paid in cash and stock. The acquisition is expected to
close during the first half of 2018, subject to customary closing
conditions and regulatory reviews. Oliver Friedrichs, Founder and CEO,
Phantom will report to Haiyan Song, senior vice president and general
manager of security markets, Splunk.
This press release features multimedia. View the full release here:
Phantom Mission Control (Graphic: Business Wire)
“Phantom’s employees and technology significantly expand and strengthen
Splunk’s vision for the security nerve center and for business
revolution through IT,” said Doug Merritt, President and CEO, Splunk.
“Splunk is committed to continuously pushing the limits of technology to
help our customers get the answers they need from their data. I am very
excited to reach this definitive agreement with Phantom and look forward
to welcoming the team to Splunk.”
“Sourabh Satish and I founded Phantom to give SOC analysts a powerful
advantage over their adversaries, a way to automatically and quickly
resolve threats,” said Oliver Friedrichs, Founder and CEO, Phantom.
“Combining SOAR with the industry’s leading big data platform is a
revolutionary advance for security and IT teams and will further cut
down the time it takes them to eliminate threats and keep the business
running. We are thrilled to empower Splunk customers to solve these
Analytics-Driven Security and SOAR
SOAR platforms improve the efficiency of security operations by
automating tasks, orchestrating workflows, improving collaboration, and
enabling organizations to respond to incidents at machine speed.
According to Gartner*, “By year-end 2020, 15% of organizations with a
security team larger than five people will leverage SOAR tools for
orchestration and automation reasons, up from less than 1% today.”
Customers will be able to use Splunk® technology for orchestration and
automation as an integral part of their Security Operations Center (SOC)
platform to accelerate incident response while addressing the skills
shortage. The combination will help SecOps teams to:
● Advance cyber defense and reduce organizational risk using
● Respond faster by accelerating incident response
● Work smarter and reduce staffing and skills challenges
Automation Beyond Security
Once integrated with the Splunk platform, IT teams will be able to
leverage these automation capabilities to help solve automation
challenges in a widening range of use cases, including Artificial
Intelligence for IT Operations (AIOps). According to Gartner**, “By
2022, 40% of all large enterprises will combine big data and machine
learning functionality to support and partially replace monitoring,
service desk and automation processes and tasks, up from 5 percent
“The majority of purchase price consideration will be paid from cash on
our balance sheet. Total equity consideration plus Phantom employee
retention incentives will result in less than one percent total dilution
from this transaction,” said Dave Conte, chief financial officer, Splunk.
Safe Harbor Statement
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding the expected
benefits of the acquisition of Phantom, the impact of the acquisition on
Splunk’s products and services, the capabilities of Phantom’s products
and services, and expected dilution to Splunk stockholders. There are a
significant number of factors that could cause actual results to differ
materially from statements made in this press release, including:
difficulties encountered in closing and integrating the merged business,
technologies, personnel and operations; costs related to the
acquisition; market acceptance of the acquisition and resulting products
and services; Splunk’s inability to realize value from its significant
investments in its business, including product and service innovations;
and general market, political, economic and business conditions.
Additional information on potential factors that could affect Splunk’s
financial results is included in the company’s Quarterly Report on Form
10-Q for the quarter ended October 31, 2017, which is on file with the
U.S. Securities and Exchange Commission. Splunk does not assume any
obligation to update the forward-looking statements provided to reflect
events that occur or circumstances that exist after the date on which
they were made.
*Gartner, Innovation Insight for Security Orchestration, Automation
and Response by Claudio
Sadowski, May 30, 2017
**Gartner, Market Guide for AIOps Platforms, Will
Prasad, August 03, 2017
Gartner does not endorse any vendor, product or service depicted in
its research publications, and does not advise technology users to
select only those vendors with the highest ratings or other designation.
Gartner research publications consist of the opinions of Gartner's
research organization and should not be construed as statements of fact.
Gartner disclaims all warranties, expressed or implied, with respect to
this research, including any warranties of merchantability or fitness
for a particular purpose.
About Splunk Inc.
Splunk Inc. (NASDAQ: SPLK) turns machine data into answers.
Organizations use market-leading Splunk solutions with machine learning
to solve their toughest IT, Internet of Things and security challenges.
Join millions of passionate users and discover your “aha” moment with
Splunk today: http://www.splunk.com.
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Splunk Cloud, Splunk Light and SPL are trademarks and registered
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respective owners. © 2018 Splunk Inc. All rights reserved.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180227005824/en/
Source: Splunk Inc.
Ken Tinsley, 415-848-8476