Databricks, a prominent data analytics and AI software company, has unveiled its intentions to acquire Arcion, an enterprise data replication startup, in a deal valued at $100 million, which includes incentives. This announcement follows Databricks’ recent successful funding round, which raised $500 million in a Series I round, elevating the startup’s valuation to a substantial $43 billion.
Databricks is renowned for its AI-driven data analytics tool, and the integration of Arcion’s technology is expected to empower Databricks. It will likely provide native solutions for data ingestion from diverse databases. It is also expected to provide SaaS applications directly into the Databricks Lakehouse Platform.
Databricks has agreed to acquire @ArcionLabs!
Troves of critical data sit on transactional databases and SaaS apps. Arcion’s connectors will simplify and accelerate data ingestion from enterprise databases to the Databricks Lakehouse Platform 💪 https://t.co/jxklOkGVzA pic.twitter.com/BwfsiiuVFU
— Databricks (@databricks) October 23, 2023
This integration will enable seamless data ingestion from platforms like Salesforce, Workday, and Oracle, further enhancing Databricks’ capabilities. Arcion, headquartered in Burlingame, California, specializes in connectors for over 20 enterprise databases and data warehouses, expanding Databricks’ data connectivity and integration offerings.
What do the CEOs Have to Say About this Acquisition?
Gary Hagmueller, the founder and CEO of Arcion, emphasized the significance of choosing the right platform for AI-driven applications, praising Databricks as the ideal choice. He highlighted that Databricks customers would benefit from reduced friction in data pipeline management, facilitating innovative AI use cases.
Databricks’ CEO, Ali Ghodsi, expressed his enthusiasm for the acquisition, stating that Arcion is a valuable asset for the company. He emphasized the importance of replicating data from systems of record like CRM, ERP, and enterprise applications to the Lakehouse.
What does this Acquisition Mean for Databricks?
It is the perfect tool for creating analytical dashboards, data applications, and AI models. Arcion’s reliable and user-friendly solution is expected to streamline this process, making data available almost instantly for more informed decision-making.
Databricks plans to expand Arcion’s workforce after the acquisition is finalized. Databricks had previously invested in Arcion during its $13 million Series A funding round in February 2022.
Databricks has a history of growth through acquisitions, having recently acquired generative AI platform vendor MosaicML for approximately $1.3 billion, data authorization company Okera in May, and data metrics startup DataJoy in 2022, among others. The acquisition of Arcion will mark Databricks’ seventh acquisition.
Inferenz is a data analytics, architecture, and design company that finds Databricks to be a valuable tool for data analytics. We are thrilled with the news of this acquisition as it will simplify our processes even further. For more information on your data solutions, visit our website today!