Analytics and AI giant Databricks has announced it is acquiring enterprise data company Arcion for $100 million, including incentives.
Headquartered in San Mateo, California, Arcion helps organizations efficiently replicate data across on-premises, cloud databases, and data platforms using change data capture (CDC) pipelines to drive next generation AI applications. Databricks previously invested in the business back in February 2022.
Now, with its acquisition, Databricks said it will be able to provide customers with native solutions to process data from various databases and SaaS applications – such as Salesforce and Oracle - as part of its Lakehouse Platform, which leverages deep learning to unify customer data and provide data analytics capabilities.
In an announcement, Databricks co-founder and CEO Ali Ghodsi explained that, in order to create analytical dashboards, data applications, and AI models, the data must first be replicated from CRM, ERP, and enterprise apps.
“Arcion’s highly reliable and easy-to-use solution will enable our customers to make that data available almost instantly for faster and more informed decision-making,” he said.
“Arcion will be a great asset to Databricks, and we are excited to welcome the team and work with them to further develop solutions to help our customers accelerate their data and AI journeys.”
The acquisition news follows hot on the heels of San-Francisco-headquartered Databrick’s latest funding round, which saw it raise $500 million in capital with a company valuation of $43 billion. Notable fresh investment came from chipmaking giant Nvidia, as well as Databricks customer Capital One.
Back in June, Databricks also announced the acquisition of large language model (LLM) startup MosaicML in a deal totalling $1.3 billion. At the time, Ghodsi said the high valuation was a result of a considerable revenue hike for MosaicML in 2023, which grew from $1 million revenue to $20 million over the space of six months.
He also predicted a further revenue increase to $130 million within a year due to access to its own platform.
This surge in industry interest in generative AI technology has also led the company to purchase other AI startups this year, snapping up Okera in May, as well as Rubicon in June.
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With its latest addition, Lakehouse will now be able to leverage Arcion’s connectors for more than 20 databases and data warehouses to offer customers a “scalable and cost-effective way” of ingesting data from disparate sources. These data ingestion capabilities will also be used as the data source for MosaicML to help users build their own AI models, Databricks revealed.
”Arcion’s real-time, large-scale CDC data pipeline technology extends Databricks' market-leading ETL solution to include replication of operational data in real-time,” commented Gary Hagmueller, CEO at Arcion.
“Databricks has been a great partner and investor in Arcion, and we are very excited to join forces to help companies simplify and accelerate their data and AI business momentum.”
