INSUBCONTINENT EXCLUSIVE:
DataRobot, a company best known for creating automated machine learning models known as AutoML, announced today that it intends to acquire
Paxata, a data prep platform startup
The companies did not reveal the purchase price.Paxata raised a total of $90 million before today’s acquisition, according to the
company.Up until now, DataRobot has concentrated mostly on the machine learning and data science aspect of the workflow — building and
testing the model, then putting it into production
The data prep was left to other vendors like Paxata, but DataRobot, which raised $206 million in September, saw an opportunity to fill in a
gap in their platform with Paxata.“We’ve identified, because we’ve been focused on machine learning for so long, a number of key data
prep capabilities that are required for machine learning to be successful
And so we see an opportunity to really build out a unique and compelling data prep for machine learning offering that’s powered by the
Paxata product, but takes the knowledge and understanding and the integration with the machine learning platform from DataRobot,” Phil
Gurbacki, SVP of product development and customer experience at DataRobot, told TechCrunch.Prakash Nanduri, CEO and co-founder at Paxata,
says the two companies were a great fit and it made a lot of sense to come together
“DataRobot has got a significant number of customers, and every one of their customers have a data and information management problem
For us, the deal allows us to rapidly increase the number of customers that are able to go from data to value
By coming together, the value to the customer is increased at an exponential level,” he explained.DataRobot is based in Boston, while
Paxata is in Redwood City, Calif
The plan moving forward is to make Paxata a west coast office, and all of the company’s almost 100 employees will become part of DataRobot
when the deal closes.While the two companies are working together to integrate Paxata more fully into the DataRobot platform, the companies
also plan to let Paxata continue to exist as a standalone product.DataRobot has raised more than $431 million, according to PitchBook data
It raised $206 million of that in its last round
At the time, the company indicated it would be looking for acquisition opportunities when it made sense.This match-up seems particularly
good, given how well the two companies’ capabilities complement one another, and how much customer overlap they have
The deal is expected to close before the end of the year.
