Data Integration Giant Fivetran Raises $565 Mn Series D Funding And To Acquire HVR

The acquisition accelerates the Fivetran mission to make access to data as simple and reliable as electricity

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Provider of automated data integration platform Fivetran, recently announced it has entered into a definitive agreement to acquire HVR, a leading provider of enterprise data replication technology.

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The acquisition will allow Fivetran to provide breakthrough database replication performance along with enterprise-grade security to address the massive market for modernizing analytics for operational data associated with ERP systems, Oracle databases, and more.   

Fivetran also announced it has raised a $565 million Series D round, consisting of new and existing investors. Andreessen Horowitz (a16z) led the round with participation from existing investors General Catalyst, CEAS Investments, Matrix Partners, and others, along with new investors ICONIQ Capital, D1 Capital Partners, and YC Continuity.

Fivetran has raised $730 million to date. The company is now valued at $5.6 billion. 

“HVR is a recognized leader for enterprise database replication and shares our same vision – to make access to data as simple and reliable as electricity. Their product is the perfect complement to our automated data integration technology and will be instrumental for us to help enterprise organizations that want to improve their analytics with a modern data stack,” said George Fraser, chief executive officer, Fivetran. “The funding gives Fivetran the resources to expand our capabilities across all functions of the business and continue to accelerate our growth globally.”  

In the race to become data-driven, enterprises today continue to grapple with how to extract and centralize data for analysis across the company, and the majority continue to leave valuable data untapped. According to Gartner (cited in this Accenture report), 97 per cent of data sits unused by organizations. Legacy on-premise technologies for operational data including enterprise resource planning (ERP) systems like SAP and Oracle databases further complicate the issue. Accenture also noted in the same report that 92 per cent of ERP platforms require manual intervention to enable data sharing. When these ERP systems and critical business applications are centralized onto a modern data stack, global organizations can uncover deeper insights more quickly with dramatically fewer resources. 

“The secure and efficient movement of data is a foundational requirement for the modern organization. HVR helps organizations to not only harness the power of that data but also realize the potential of it,” shared Anthony Brooks-Williams, chief executive officer, HVR. “Combining HVR and Fivetran will enable a next-generation solution that will better inform business decisions by providing the freshest data available. We’re thrilled to be joining forces with Fivetran and look forward to what this incredible opportunity will provide for our growing team, partners, and customers." 

The combination of Fivetran and HVR complementary technologies will accelerate Fivetran’s mission to make access to data as simple and reliable as electricity. The acquisition — a cash and stock deal valued at $700 million — strengthens Fivetran’s market position as one of the data integration leaders for all industries and all customer types. The combined capabilities of Fivetran and HVR will enable modern analytics for the world’s most business-critical data without compromising security, performance or ease of use.  

“Fivetran is a critical component of the modern data stack. Without an always-on, accurate, and reliable way to centralize data, global organizations aren’t maximizing the use of data or data infrastructure," stated Martin Casado, general partner, Andreessen Horowitz. "Fivetran solves the complex challenge of scaling and automating data integration better than anyone else, and joining forces with HVR will expand Fivetran’s capabilities to address the performance and security requirements of the enterprise and Global 2000. The modern data stack is a paradigm shift for global enterprises – with billions of dollars of revenue at stake – and Fivetran is a foremost catalyst in this shift."  

The Fivetran customer roster includes thousands of global companies such as ASICS, Autodesk, BJ’s Restaurants, Conagra Brands, DocuSign, Forever 21, Lionsgate, Square, and Ziff Davis. HVR’s customers include dozens of Fortune 500 brands.  

“We are seeing the promise of how data can transform businesses, by harnessing its power to create the insights and breakthroughs needed to produce positive, world-changing products, solutions, and services,” added Matthew Jacobson, general partner, ICONIQ Growth. “We are very impressed with the ease of use and effectiveness of Fivetran’s platform and believe in its potential to automate reliable data connections. We have been fortunate to partner with many high-growth, cloud-based, infrastructure market leaders, and we believe Fivetran is a category-defining leader in the broader data ecosystem.”  

The transaction has been approved by the Boards of Directors of both companies, though the finalization of Fivetran’s acquisition of HVR is subject to customary approvals. The deal is expected to close in early October.