• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

2

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998

3

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

1

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

2

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998

3

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
TechCybersecurity

Here’s Why Big Data-Cruncher Splunk Is Buying Cyber Startup Phantom for $350 Million

Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
Robert Hackett
By
Robert Hackett
Robert Hackett
Down Arrow Button Icon
February 27, 2018, 2:47 PM ET
Splunk
Signage for operational intelligence company Splunk, in the Silicon Valley town of San Jose, California, April 7, 2017. (Photo via Smith Collection/Gado/Getty Images).Smith Collection—Gado Getty Images
Add Fortune on Google for similar content.

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).

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. “You need to adapt defense at machine speed,” she says.

Splunk and Phantom first partnered in 2016 as part of an initiative to more tightly integrate their products. That same year Phantom made a big splash at the annual RSA Conference, the cybersecurity industry’s biggest event, when it placed first in a notable startup competition.

Song said the acquisition was “the natural next step for us to join forces.”

For Splunk, security remains big—and growing—part of its business. The company brought in $950 million in revenue last year, roughly 40% to 50% of which derived from its security offerings, as CEO Douglas Merritt noted on a third quarter earnings call in November.

Overall, Splunk’s revenues grew 42% last year compared to its prior fiscal year, when it brought in $668.4 million.

Splunk’s security-related sales have been a major growth factor in recent years. On a 2015 earnings call, David Conte, Splunk’s chief financial officer, said that security accounted for about 40% of Splunk’s business, doubling its contribution to the firm’s total revenue in just two years.

“We have seen security go from, again what was a couple years ago 20%, 25% to consistently 40% of the business,” Conte said at the time, as recorded in a transcript of the call on the finance site Seeking Alpha.

Earlier that year, in July 2015, Splunk completed a $190 million acquisition of Caspida, a cybersecurity firm that sold user behavior analytics tools, which parse large data sets for patterns and anomalies. The purchase—formerly Splunk’s biggest—helped to expand Splunk’s security product line.

With the purchase of Phantom, Splunk is clearly seeking to keep up the momentum by planting its flag in the security orchestration and automation segment, a hot category of the cybersecurity market.

The deal works out well for Phantom, too. After Phantom’s most recent fundraising round in January 2017, the company was privately valued at just under $100 million, including a total of about $23 million in venture capital raised, per data provided by Pitchbook, a VC industry tracker.

Phantom’s investors include Blackstone Group, the private equity giant, and In-Q-Tel, the venture capital arm of the U.S. Central Intelligence Agency.

Song said the deal, which is expected to close by the first half of the year, represents a “shift in our industry, in how security needs to be done”; it signals, in other words, businesses’ dawning realization that humans are increasingly going to have to rely on machines to augment their responses to digital break-ins and data breaches.

About the Author
Robert Hackett
By Robert Hackett
Instagram iconLinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

ds
CommentarySoftware
I argued with the father of open source for 2 years. Now the AI fight is the same — only bigger
By David SiegelJuly 3, 2026
2 hours ago
ashok
Commentary250 Years of Innovation
The greatest startup in history: What we can learn from America’s founders at today’s AI frontier
By Ashok N. SrivastavaJuly 3, 2026
2 hours ago
2
Commentary250 Years of Innovation
America’s secret weapon isn’t just innovation — It’s the freedom to fail
By Keith KrachJuly 3, 2026
4 hours ago
A $75 billion valuation, 75 million global customers and on its way to America—Revolut is London’s disruptor extraordinaire
EuropeLetter from London
A $75 billion valuation, 75 million global customers and on its way to America—Revolut is London’s disruptor extraordinaire
By Kamal AhmedJuly 3, 2026
4 hours ago
Man in a black hat and jacket
InvestingSpace Exploration
Elon Musk can’t sell a single SpaceX share for a year—and then all the locks crack open at once
By Amanda GerutJuly 3, 2026
4 hours ago
Microsoft’s next big bet isn’t on a model but on becoming the Swiss Army knife of enterprise AI
AIMicrosoft
Microsoft’s next big bet isn’t on a model but on becoming the Swiss Army knife of enterprise AI
By Sheryl Estrada and Sebastian HerreraJuly 3, 2026
7 hours ago

Most Popular

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
20 hours ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
7 hours ago
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds
Economy
Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds
By Sasha RogelbergJuly 2, 2026
22 hours ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
22 hours ago
Current price of oil as of July 2, 2026
Personal Finance
Current price of oil as of July 2, 2026
By Joseph HostetlerJuly 2, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.