Fivetran, the data connectivity startup, had a big day today. For starters, it announced an investment of $ 565 million on a valuation of $ 5.6 billion, but it didn’t stop there. It also announced its second acquisition this year, hooking up HVR, a data integration competitor that had raised more than $ 50 million, for $ 700 million in cash and shares.
The company last raised a $ 100 million Series C on a valuation of $ 1.2 billion, increasing the valuation more than 5 times. As with this Series C, Andreessen Horowitz was back at the head of the round, with the participation of other double dippers General Catalyst, CEAS Investments, Matrix Partners and other anonymous companies or individuals. New investors ICONIQ Capital, D1 Capital Partners and YC Continuity have also joined us. The company reports that it has now raised $ 730 million.
Acquiring HVR is a huge investment for the startup, taking over a business for a price almost equal to all the money it has raised to date, but it offers a way to quickly expand its market. by buying a competitor. Earlier this year, Fivetran acquired Teleport Data as it continues to add functionality and customers through the acquisition.
“The Acquisition – a $ 700 Million Cash and Stock Transaction – Strengthens Fivetran’s Position in the Market as a Leader in Data Integration for All Industries and All the types of customers, ”the company said in a statement.
While this may sound like corporate marketing, there is some truth to it, as extracting data from multiple sources, sometimes in legacy siled systems, is a huge challenge for businesses, and Fivetran and HVR have developed tools. to provide the pipes to connect various data sources and implement them throughout the company.
Data is at the heart of a number of modern business practices, including customer experience management, which leverages customer data to deliver personalized experiences based on what you know, and data is the main fuel for machine learning models, which use them to understand and learn how a process works. Fivetran and HVR provide the essential infrastructure to move data to where it is needed, by connecting to various applications like Salesforce, Box or Airtable, databases like Postgres SQL or data repositories like Snowflake or Databricks.
It remains to be seen whether the bigger the better, but Fivetran is betting it will be in this case as it progresses through the bootstrap journey. The transaction has been approved by the boards of directors of both companies. The deal is still subject to standard regulatory approval, but Fivetran expects it to be completed in October.