|Splunk logo / Photo Credit via Wikimedia Commons|
Big data analytics firm Splunk has agreed to buy VictorOps for US$ 120 million in a cash-and-stock deal. VictorOps is a startup based in Boulder, CO, and develops incident management software used by software developers. By combining both companies’ core competencies, Splunk hopes to build a collective system that will improve customer experience by integrating big data analytics with development operations, according to Robert Hackett, writing for Fortune magazine.
Doug Merritt, CEO and president of Splunk, said the company is always looking for partnerships that will improve the benefit it provides for customers such as Coca-Cola, Hyatt, and Zillow. Merritt added that Splunk will address customer interest in data through machine learning and automation technologies.
VictorOps technology allows software engineers to deal with technical issues and avoid committing previous mistakes. Its products generate notifications, form chat groups, present important documents, and keep detailed records as teams try to solve coding problems.
Prior to purchasing VictorOps, Splunk spent US$ 350 million to gain possession of Phantom Cyber, another startup that helps IT teams resolve cybersecurity threats. Merritt stressed that VictorOps and Phantom services can be paired since Phantom’s products do not have the kind of collaboration mechanism that VictorOps develops.
VictorOps was established in 2012 by CEO Todd Vernon and had raised a total of $36.3 million at a private market valuation of $57.7 million. Its investors include Shea Ventures and Costanoa Ventures. The company’s 90 employees will be retained, according to Merritt. The acquisition will give Splunk a presence in the areas of Boulder and Denver in Colorado, Merritt added.