Data analytics company Splunk (NASDAQ: SPLK) on Tuesday announced receiving a $1 billion investment from technology-focused private equity firm Silver Lake.
The investment comes in the form of convertible notes and Splunk says it plans on using the money to “fund growth initiatives and manage its capital structure.” This includes a share repurchase program of up to $1 billion that will be executed over time.
The convertible senior notes purchased by Silver Lake will have an initial conversion price of $160 per share, and they will mature in July 2026, with an annual interest of 0.75%.
Splunk shares jumped more than 11% following news of the investment.
Founded in 2003, the San Francisco-based company went public in 2012. In its initial public offering (IPO), Splunk sold more than 15 million shares at $17 per share. At the beginning of 2021 they were priced at roughly $170 per share and they are currently at $139.
Splunk provides a cloud-based data platform that can be used for cybersecurity, IT and DevOps. On Tuesday, the company launched Splunk Security Cloud, a security operations platform designed to deliver enterprise-grade security analytics, automated security operations, and integrated threat intelligence.
Splunk announced several cybersecurity-related acquisitions in the past years, including Phantom Cyber (for $350 million), VictorOps (for $120 million), and TruSTAR.
Earlier this month, the company announced financial results for Q1 2022, claiming that its total annual recurring revenue jumped 39% year-over-year, to $2,47 billion, and its total revenue increased by 16%, to $502 million.