Databricks Acquires Data Replication Startup Arcion for $100 Million

The acquisition aims to facilitate native data ingestion from various enterprise data sources, reducing customers' third-party tool dependency, with Arcion’s platform providing over 20 connectors to popular sources including Oracle, PostgreSQL, Salesforce, and Snowflake, bolstering Databricks' AI-focused operations.

Databricks, valued at $43 billion, has acquired startup Arcion, a data replication company, for $100 million, to enhance native data ingestion from various enterprise data sources.
Prior to the acquisition, customers had to use third-party tools to get data into Databricks. With Arcion's platform, Databricks will have its own tool, reducing customers' dependencies on third-party tools.
Arcion's technology offers over 20 connectors to popular data sources including Oracle, PostgresSQL, Salesforce and Snowflake, enhancing Databricks' AI-focused operations.
The acquisition follows Databricks' recent focus on AI, demonstrated by its prior acquisition of AI-focused data governance platform, Okera, and OpenAI competitor, MosaicML.
The deal is estimated to bring an 8x return to Arcion's seed round investors in less than three years, marking a significant step in Databricks' expanding portfolio.