Databricks cements Arcion Labs deal, will absorb its data access tools

A $100M match made in analytics heaven, parties claim

Analytics biz Databricks is set to purchase Arcion Labs, developer of a cloud-native data replication platform, in a deal estimated to be worth upwards of $100 million.

Databricks, which started out building products based on the Apache Spark project, said it is buying Arcion because the tech makes it easier for enterprises to ingest data from various database and SaaS applications into the Databricks Lakehouse Platform.

"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," Databricks co-founder and CEO Ali Ghodsi said.

Arcion's platform lets that data be available "almost instantly" for faster and more informed decision-making, the exec claimed. A timeframe for the transaction was not specified.

The technology is built on a scalable change data capture (CDC) engine with connectors for over 20 enterprise databases and other sources. This will allow data to be ingested continuously or on-demand into a customer's data lakehouse, in accordance with the enterprise security, governance, and compliance rules fed into the Databricks platform.

Writing on the Arcion blog, CEO and founder Gary Hagmueller, said:

"As the demand for AI technology grew, it became increasingly obvious that the hardest part of delivering performant apps was not the AI itself, it was the prosaic task of getting access to source data," Hagmueller said.

CTO and founder Rajkumar Sen said the merger gives Arcion access to an "influx of resources" that the company will use to scale. Databricks already deals with more than 10,000 customers worldwide, he claimed, providing a level of proliferation that would have taken Arcion years to achieve as an independent entity.

Databricks was also an investor in Arcion through its Databricks Ventures arm, along with HPE Pathfinder and others such as Bessemer Venture Partners.

Only last month, Databricks itself received an infusion of funding, picking up $500 million led by funds and accounts advised by T Rowe Price Associates and other existing investors.

The company also bought generative AI startup MosaicML earlier this year, but that deal was said to be worth $1.3 billion. The move targets customers that want to train and run their own custom machine learning models by bringing together MosaicML with the Databricks Lakehouse Platform. ®

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