(Bloomberg) -- Private equity firm Hellman & Friedman has taken a 7.5% stake in Splunk Inc., a show of confidence in the software company's incoming chief executive officer.
Hellman & Friedman's holdings are valued at $1.38 billion, according to a securities filing Friday. The disclosure sent the stock climbing as much as 8.3% in intraday trading.
Shares in Splunk, like many software companies, are down since late last year. It has lost about a quarter of its value since November. Splunk got a short-lived boost from news that Cisco Systems Inc. had discussed an acquisition for more than $20 billion, but the talks stopped early last month.
Splunk said this week that Gary Steele, currently the CEO of cybersecurity company Proofpoint Inc., will take the helm at Splunk starting April 11. He replaces Doug Merritt, who resigned in November.
The Wall Street Journal reported news of the private equity investment earlier Friday. Hellman & Friedman said in the filing that Splunk is undervalued and has “tremendous long-term growth potential.”
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