(Reuters) - Splunk Inc said on Tuesday that it had received $1 billion in investment from private-equity firm Silver Lake, triggering an 8% jump in shares of the data analytics software firm in premarket trading.
Silver Lake will invest the amount in convertible notes and its chairman, Ken Hao, will join Splunk’s board, making him the eleventh member.
San Francisco-based Splunk expects to use the proceeds to fund growth initiatives and manage its capital structure, including a newly authorized share buyback program of up to $1 billion.
The notes, which will bear an annual interest rate of 0.75% and mature in July 2026, will have an initial conversion price of $160 per Splunk share, the company said.
Reporting by Chavi Mehta in Bengaluru; Editing by Bernard Orr
Source: Reuters