Splunk, a San Francisco-based firm that provides data analytics, said Monday it plans to buy the 4-year-old startup Phantom Cyber for $350 million in cash and stock. If the deal clears regulatory review, it will be the company’s biggest ever (SPLK, +9.29%).
For Splunk, the acquisition is a no-brainer. Phantom’s products help automate the work of IT security staff, many of whom use Splunk’s software to triage incidents within their security operations centers. Haiyan Song, who heads Splunk’s security markets group, tells Fortune that “automation is becoming more and more important because of the shortage in professional capabilities,” referring to a talent deficit that continues to plague the cybersecurity industry.
Author: Robert Hackett