Machine data solutions firm Splunk said on Tuesday that it has agreed to acquire Phantom Cyber, a provider of Security Orchestration, Automation and Response (SOAR) solutions.
Under the terms of the agreement, Splunk will pay approximately $350 million in cash and stock to acquire Palo Alto, Calif.-based Phantom.
Phantom, which has raised more than $23 million in funding, has developed a community-powered security automation and orchestration platform that currently has more than 200 “apps” which integrate with various security products. These apps are available for a wide range of security tools from partners including Cisco, McAfee, Palo Alto Networks, RSA Security, Symantec, Splunk, HPE, IBM and others.
By combining technologies from both companies, Splunk says that IT teams will be able to leverage automation capabilities to “help solve automation challenges in a widening range of use cases, including Artificial Intelligence for IT Operations (AIOps).”
Following the acquisition, Phantom founder and CEO Oliver Friedrichs will report to Haiyan Song, senior vice president and general manager of security markets at Splunk.
The acquisition is expected to close during the first half of 2018, subject to customary closing conditions and regulatory reviews.
“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.
Investors in Phantom include, iconic Silicon Valley VC firm Kleiner Perkins, TechOperators Venture Capital, Blackstone, Foundation Capital, In-Q-Tel, Rein Capital, Zach Nelson, and John W. Thompson.