Analytics software provider Splunk on Tuesday announced a $1 billion investment from Silver Lake that's meant to support the company's growth initiatives. Splunk also expects to use the proceeds from the investment to execute a newly authorized share repurchase program of up to $1 billion.
"We've significantly evolved our business since we began our transformation to become a cloud-first company over two years ago, and today's announcement reaffirms the strength of our business fundamentals, cloud strategy and high-growth trajectory," said Splunk CEO Doug Merritt. "Silver Lake has a strong reputation and track record of investing in innovative technology companies, and with their support, we are accelerating toward our goals."
As part of the investment, Kenneth Hao, chairman and managing partner of Silver Lake, will join Splunk's board of directors. In prepared remarks, Hao said Splunk is at an inflection point and well positioned for its next phase of growth.
Earlier this month, Splunk reported its first quarter financial results and said it was seeing a high rate of cloud adoption, with its annualized recurring revenue from cloud rising 83%, year over year, to $877 million.
Shares of Splunk were up over 11% in early trading.