Databricks To Acquire Data Replication Startup Arcion For $100M

On the heels of Databricks’ $43 billion valuation last month, the two companies say they have struck a deal that will give Databricks ‘connectors’ to simplify and speed up data being ingested from enterprise databases to the Databricks Lakehouse Platform.

Data analytics and AI software maker Databricks has revealed plans to buy Arcion, an enterprise data replication startup, for $100 million including incentives, the two companies revealed Monday.

The deal comes on the heels of Databricks raising $500 million in a Series I round, which earned the startup a valuation of $43 billion last month.

Databricks comes to market with its AI-based data analytics tool. Once combined with Arcion’s technology, Databricks will offer businesses native solutions to ingest data from various databases and SaaS applications into the Databricks Lakehouse Platform, including Salesforce, Workday and Oracle.

[Related: Databricks Offers Data Unity Option With New Delta Lake Release]

Burlingame, Calif.-based Arcion offers connectors for over 20 enterprise databases and data warehouses, according to the company.

“It’s clear that enterprises that want to derive value from AI need to choose the right platform upon which to build apps. Having worked with many platforms as partners, I am certain that Databricks is that platform,” said Gary Hagmueller, founder and CEO of Arcion, in a blog post about the deal Monday. “By integrating Arcion, Databricks customers will now be able to reduce or remove the friction of data pipe building and maintenance and enable new, innovative and highly valuable AI use cases.”

Databricks CEO Ali Ghodsi called Arcion a “great asset” to the company.

“To build analytical dashboards, data applications and AI models, data needs to be replicated from the systems of record like CRM, ERP and enterprise apps to the Lakehouse,” Ghodsi said of the deal in a statement. “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.”

Databricks plans to increase Arcion’s staffing following the close of the deal, according to Ghodsi.

Databricks was one of the investors in Arcion’s $13 million Series A funding round in February 2022.

Databricks is no stranger to growing via acquisition. The company in June said it would acquire generative AI platform vendor MosaicML for approximately $1.3 billion. Databricks also revealed plans to acquire data authorization company Okera in May and closed its purchase of data metrics startup DataJoy in 2022, to name a few. Once closed, the Arcion deal will be the company’s seventh acquisition.

San Francisco-based Databricks, which got its start in 2013, was founded by the creators of Apache Spark.