Splunk Shares Soar on $1 Billion Investment From Silver Lake

Splunk Inc., an infrastructure software company, said private equity firm Silver Lake will invest $1 billion to help expand its business.

The investment disclosed Tuesday will be in the form of convertible senior notes, Splunk said in a statement. Some of the proceeds will also be used for a newly authorized share buyback program of as much as $1 billion.

Under terms of the deal, the notes will have an initial conversion price of $160 per share, representing a 30% premium to the volume-weighted average closing price of Splunk’s stock over 10 days as of Monday. The new buyback ...