DataRobot is Acquiring Paxata to Strengthen its Machine Learning Platform with Data Prep

Automated machine learning (AutoML) is a ‘trendy’ topic in the technological world. One of the best-known companies working on AutoML is DataRobot. Today, the company announced its plans to acquire Paxata, a startup working on data prep platform. The companies did not disclose the purchase price.

According to the Paxata, it raised a total of $90 million before today’s acquisition.

Up until now, DataRobot was focused mostly on machine learning and data science aspect of the workflow. The aspect includes building, testing, and then putting the model it into production. The data prep was handled by other vendors like Paxata. However, DataRobot (which raised $206 million in September) saw an opportunity to fill in a gap in their platform with Paxata.

Phil Gurbacki, SVP of product development and customer experience at DataRobot said, “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”.

Prakash Nanduri, CEO and co-founder at Paxata, said the two companies were compatible; hence, 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.

Headquarters of DataRobot is in Boston, while Paxata is based in Redwood City, California. The plan is to make Paxata a west coast office, and all its 100 employees will become part of DataRobot when the deal closes.

While the two companies are working together to amalgamate Paxata more fully into the DataRobot platform; both the companies plan to let Paxata be a standalone product.

DataRobot has bagged in more than $431 million in fundraisings, according to PitchBook data. It raised $206 million in its last round. The company indicated it would be looking for acquisition opportunities when it made sense.

This match-up seems great, provided how well the two companies’ capabilities complement one another, and the number of common customers they have. The deal is expected to close before the end of the year.

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