Phantom is a four-year-old start-up in Security Orchestration, Automation and Response (SOAR), and the purchase price is subject to adjustment and will be paid in cash and stock. It is a strategic acquisition built on a strong existing foundation: the two companies have partnered since 2016, and Phantom’s products help automate the work of IT security staff, many of its customers already using Splunk to triage incidents within their security operations centres.
Security makes up about 40% to 50% of Splunk’s revenues, and the acquisition bolsters Splunk’s offerings in this space.
The acquisition, announced today, is expected to close during the first half of 2018, subject to customary closing conditions and regulatory reviews and is Splunk’s largest acquisition to date.
Gartner research indicates 15% of organisations with a security team larger than five people will leverage SOAR tools by the end of 2020, up from 1% today.
With this acquisition, Splunk’s customers will be on top of this, working smarter, advancing cyber-defence and reducing organisational risk using analytics-driven security, and responding faster by accelerating incident response.
“Phantom’s employees and technology significantly expand and strengthen Splunk’s vision for the security nerve centre and for business revolution through IT,” said Doug Merritt, president and chief executive, Splunk.
“Splunk is committed to continuously pushing the limits of technology to help our customers get the answers they need from their data. I am very excited to reach this definitive agreement with Phantom and look forward to welcoming the team to Splunk.”
“Sourabh Satish and I founded Phantom to give SOC analysts a powerful advantage over their adversaries, a way to automatically and quickly resolve threats,” said Oliver Friedrichs, founder and chief executive, Phantom.
“Combining SOAR with the industry’s leading big data platform is a revolutionary advance for security and IT teams and will further cut down the time it takes them to eliminate threats and keep the business running. We are thrilled to empower Splunk customers to solve these important challenges.”
Friedrichs will report to Haiyan Song, Splunk’s senior vice-president and general manager of Security Markets.