Software AG has agreed to acquire StreamSets, a provider of a data integration platform. No financial terms were disclosed. StreamSet’s backers include Harmony Partners, Tenaya Capital, Battery Ventures and New Enterprise Associates.
RESTON, Va.–(BUSINESS WIRE)–Software AG (Frankfurt MDAX®: SOW) today announced an agreement to acquire StreamSets, a leader in data integration for the modern data stack. With this acquisition, Software AG adds a sizeable and fast-growing SaaS and subscription business that is growing rapidly, with StreamSets’ revenue having grown at a four-year CAGR of more than 70% through 2021.
StreamSets’ enterprise-grade data integration platform enables customers to move data seamlessly and securely to and from any part of their digital backbone, which is built by Software AG’s Digital Business portfolio across hybrid and multi-cloud environments. This combination enables organizations to better unlock and capture value from data as it moves between on-premises applications, data streams, SaaS applications, legacy data stores and cloud data platforms like Amazon RedShift, Databricks and Snowflake. The combined hybrid iPaaS platform will deliver consolidated, conformed, continuous data to smart applications and the connected enterprise.
Sanjay Brahmawar, Software AG CEO, commented: “This acquisition is a major milestone for Software AG. We’re acquiring a fast-growing business in a cloud market growing 26%. Its technology and team will further differentiate our hybrid integration offering for customers and fully complement our strategy to deliver sustainable profitable growth. In Girish and the whole StreamSets team, we are welcoming outstanding colleagues with a track record of innovation and success. Their base in California also extends our presence in North America, and I am incredibly excited at the prospect of working with them to grow our business together.”
Girish Pancha, CEO of StreamSets, said: “We’re delighted to be joining the Software AG family and working with Sanjay and team on this next phase of our growth journey. Our products are made for each other, and we see tremendous opportunity in the convergence of application integration and data integration to deliver smart applications. I have been admiring Software AG’s transformation from afar, and together, I believe we will accelerate our growth trajectory by unlocking digital transformation for our customers.”
The acquisition is the first in Software AG’s M&A strategy which is designed to accelerate growth by opening up access to new parts of its €61 billion total addressable market. In this case, the deal will see Software AG enter the cloud data integration portion of the wider data integration market, a segment growing 26% annually in a market projected to reach $3.5 billion by 2025.
Where Software AG’s existing Digital Business portfolio connects a hybrid application landscape and integrates the transaction data within it, StreamSets’ technology collects, consolidates and moves data from across this landscape as well as a broader range of datasets including edge and process data. This requires smart data pipelines that understand the structure and meaning of the data passing through them and have the ability to transport the data to a set of hybrid destinations, such as modern cloud data warehouses, data lakes, messaging systems and event hubs. In this way, the StreamSets DataOps Platform delivers modern data pipeline technology to solve a crucial part of the hybrid integration challenge for enterprise customers.
Alongside this strong technology fit, StreamSets’ go-to-market approach is also highly complementary to Software AG’s. Both groups target the same enterprise customer segment and buying personas that reside in the same IT purchasing area. The companies also have highly complementary cultures, combining ‘agile start-up’ with ‘50 years bold’ global software company, but with a shared focus on innovation, customer success and growth.