Databricks Makes $100M Acquisition Of Data Replication Startup Arcion


Databricks Expands its Portfolio with Data Replication Startup Arcion

Databricks, a leading data and AI company, has made another big move in the industry by acquiring data replication startup Arcion for $100 million. This comes just weeks after Databricks raised a whopping $500 million in funding, solidifying its position as a highly valued startup.

Key Takeaway

Databricks expands its data and AI capabilities by acquiring data replication startup Arcion. This acquisition enables Databricks to provide a seamless and scalable solution for ingesting data from various enterprise sources, removing the need for third-party tools. With enhanced connectivity to enterprise databases, Databricks strengthens its position in the AI market and continues to drive strategic growth in the industry.

Streamlining Data Ingestion for Databricks

Data replication is a crucial aspect of managing data lakes, and with the acquisition of Arcion, Databricks aims to provide a native and seamless solution for ingesting data from various enterprise sources. Prior to this, customers had to rely on third-party tools, but now Databricks will have its own tool to simplify and scale data ingestion.

The CEO of Databricks, Ali Ghodsi, emphasized the significance of this acquisition, stating, “Arcion will provide them with native capabilities to get that data seamlessly into Databricks. That removes a lot of friction that today exists in the Data + AI journey that organizations have to go through.”

Unlocking Connectivity with Enterprise Databases

Arcion, which has raised $18 million since its inception in 2016, offers Databricks a wide range of connectors to enterprise databases and data sources. These connectors enable Databricks to bring data in from popular sources such as Oracle, Postgresql, Redis, SAP, Salesforce, and Snowflake.

Furthermore, Arcion has built connectors to Databricks as well, making it a mutually beneficial partnership of data ingestion and storage solutions.

Strategic Growth in the AI Landscape

This acquisition comes as Databricks continues to expand its focus on artificial intelligence (AI) technologies. In recent months, the company has made significant strides in the AI space, including the development of an open-source large language model called Dolly and the acquisition of AI-focused data governance platform Okera.

While Arcion may not directly align with AI, it plays a crucial role in data ingestion, an essential step in utilizing data for AI applications. This acquisition reinforces Databricks’ position as a key player in the growing AI market.

A Promising Outcome for Arcion and its Backers

Arcion’s sale price of $100 million represents a $35 million premium on its last private valuation, showcasing a strong outcome for the company and its investors. For those who invested in Arcion’s seed round, the deal brings an impressive 8x return in under three years, demonstrating the potential and success of the venture.

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