(Reuters) - Data analytics software maker Splunk Inc SPLK.O on Wednesday said it would acquire privately held SignalFx, which makes software for the cloud, in a cash and stock deal for about $1.05 billion.

Splunk shares rose 7.4% to $137.99 in extended trade.

Splunk hopes the deal will boost its capabilities by allowing its customers to use SignalFx products to monitor their data centers and applications in real-time.

“The acquisition of SignalFx squarely puts Splunk in position as a leader in monitoring and observability at massive scale,” Splunk’s Chief Executive Officer Doug Merritt said in a statement.

He added the deal would give customers one platform that can monitor the “entire enterprise application lifecycle.”

The company expects the deal, which is 60% cash and 40% in Splunk common stock, to close in the second half of fiscal 2020.

Separately, Splunk reported a second-quarter loss of $100.87 million, compared with a loss of $103.50 million last year, hurt by higher operating expenses.