Startup Trends: Startups turn to strategic acquisitions in 2024
In 2024, several startups made strategic mergers and or acquisitions to grow or expand their competencies, while more established companies acquired some private companies.
Databricks acquired Tabular and Einblick
Databricks, a provider of data analytics solutions to corporations and a Private Market Magnificent 7 company, made two acquisitions in 2024 to expand its data and AI offerings.
In June 2024, the company announced the purchase of Tabular, a data management company. The purchase combines the creators of two of the leading open-source lakehouse formats, Apache Iceberg™ and Linux Foundation Delta Lake. San Francisco-based Databricks said the purchase price was between $1 billion and $2 billion.
In January 2024, Databricks announced the purchase of Cambridge, Massachusetts-based Einblick for an undisclosed sum. Einblick, founded in 2019 and based in Santa Clara, California, had spent four years building an AI-native collaboration platform that helps users solve data problems with just one sentence.
Databricks Forge Price™ is $79.95 as of December 2, 2024, giving it an implied valuation of $47.22 billion, an 8.8% premium to its last funding round in September 2023.
AlphaSense acquired Tegus
AlphaSense, a leading market intelligence and search platform, announced in June it was buying Tegus, a niche provider of expert research and private company content, for $930 million. The deal closed in July.
AlphaSense said Tegus’ financial data offering complements AlphaSense's extensive product suite and datasets. Founded in 2011, New York City-based AlphaSense has developed a market intelligence research platform that enables businesses to get insights from both private and public sources. Chicago-based Tegus’ investors included Oberndorf Enterprises, Positive Sum and Willoughby Capital.
Udacity acquired by Accenture
Udacity, a provider of online courses focused on technology topics, agreed in March to be acquired by global consulting firm Accenture (NYSE:ACN). The deal closed in May. Accenture said that Mountain View, California-based Udacity's 230-person workforce would join a new Accenture unit called LearnVantage, which would provide Accenture's clients with learning and training services to help re-skill and upskill their people in technology, data and AI fundamentals.
According to Forge Global, Udacity's last-known valuation was $1.08 billion, based on its latest funding round in November 2015.
CareBridge Health agreed to be acquired by Elevance Health
CareBridge Health, a startup provider of healthcare and support for high-risk individuals, agreed in October to be acquired by Elevance Health (NYSE: ELV) for $2.7 billion. The purchase price was more than double Nashville, Tennessee-based CareBridge’s $1.15 billion valuation based on its last primary funding round in 2022. According to Forbes, CareBridge was founded in 2018 with support from healthcare investment firm Oak HC/FT.
Exabeam merged with LogRhythm
Exabeam, a provider of AI and automation for threat detection, investigation, and response (TDIR), merged with LogRhythm in July 2024. Under the Exabeam name, the combined firm will leverage the strengths of both organizations to create a best-of-breed cybersecurity vendor relentlessly focused on empowering security analysts, security engineers, and CISOs with the tools, intelligence, and guidance needed to safeguard their organizations against cyber threats.
Past investors in Foster City, California-based Exabeam include Blue Owl Capital, Acrew Capital and Lightspeed Venture Partners.
