Enterprise AI company DataRobot is set to boost its end-to-end data capabilities by buying Redwood City, Calif.-based startup Paxata.
With the acquisition, DataRobot hopes to "fulfill its mission to build the world’s first automated end-to-end enterprise AI platform," according to a statement.
No financial terms were disclosed. Paxata, a startup focused on streamlining data preparation for various analytical applications, raised $86 million in venture capital funding from investors including Intel Capital, Microsoft Ventures, Cisco Investments and more.
The Paxata acquisition is DataRobot’s third and largest acquisition in 2019 and its fifth since 2017.
"The combination of our two technologies is very powerful, and we’ve long shared joint customers," Igor Taber, DataRobot's senior vice president of corporate development and strategy, said in an email to BostInno. "After spending a significant amount of time together, it became increasingly apparent that Paxata’s data prep solution was best aligned with us across our product and technology vision, as well as our culture and values."
As part of the acquisition, the companies also announced an integration into DataRobot’s AI Catalog to allow business analysts and citizen data scientists to prepare data for machine learning. DataRobot will continue to sell Paxata's existing software solution to customers as a standalone product.
The deal is expected to close by the end of the year. Once the transaction is finalized, all Paxata employees—nearly 100 in total—will become DataRobot employees, and the cross-country teams will work together to fully integrate Paxata's data prep capabilities into DataRobot's AI platform.
DataRobot reportedly became a unicorn in July after closing a $206 million Series E round. Taber declined to comment on the company's specific valuation and on how the Paxata acquisition might impact it, but he hinted that the company's numbers are on the rise.
"We are excited about the rapid growth and success of our organization," Taber said. "We feel that Paxata’s addition will only accelerate this further."
