We analyse the activity in buying a company of data science and analytics expert Alteryx. Its investment capacity is preceded by the rounds of funding it received within a few years of starting up.
Getting to know Alteryx
Alteryx (Irvine, California) is a provider of a data science and analytics platform "end-to-end for businesses. It was founded in 2011 by its current CEO and President Dean Stoecker. Alteryx is a publicly traded company on the NYSE under the ticker symbol AYX.
Alteryx provides analysts with the ability to prepare, combine and analyse all your data through a repeatable workflow and implement and share analytics at scale for more detailed information. Analysts can connect and clean data from cloud applications, spreadsheets and other sources. They can also join this data and then perform analytics (predictive, statistical and spatial) using the same user interface, without writing any code.
Alteryx's clients (more than 3,550 worldwide) range from many of the largest and best-known brands, such as Experian, Kaiser Permanente, Ford and McDonald's, to growing organisations such as Rosenblatt Securities, Veritix and Consumer Orbit, who are using the power of data to gain a competitive advantage.
From 2013 until 2015, Alteryx has received three rounds of funding. The total amount injected was up to $163 million, money that was used for expansion, consolidation and continued growth. The parties involved in these rounds were Insight Venture Partners, Iconiq Capital, Meritech Capital, SAP Ventures, Thomson-Reuters and Toba Capital.
Buy a company
Compared to other organisations we have studied recently, Alteryx is not a company active in buying a company. It has only confirmed three operations since its foundation, two of them in 2017 and one later in 2018.
We understand that the rounds mentioned in the previous section have played a role in the three purchases discussed below:
1. Alteryx ANZ
Headquartered in Sydney, Alteryx ANZ is a exclusive distributor of Alteryx products in the Australasia region (Australia, Melanesia and New Zealand) since 2015.
On 25 February 2018 Alteryx completed the acquisition of Alteryx ANZ, for which the final amount is unknown.
This acquisition builds on the success of the more than 100 current clients in the region, including companies such as Amaysim, Commonwealth Bank, NBN, Australia Post and Telstra. Alteryx intends to expanding the team with additional sales, channel, support and technical resources to address the growing market. According to IDCMore than 40% of organisations in Australia and New Zealand have already invested in Big Data and analytics implementations and will increase their investments.
"There is no doubt that data is changing businesses around the world, and Australia and New Zealand are no exception," said Steve Walden, Executive Vice President of Business Development. "With the focus on analytics and data science ROI, this acquisition allows us to better meet the needs of Alteryx's existing customers. Being in the market also provides the opportunity to expanding our ecosystem of customers and partners more efficiently", he added.
2. Semanta
Semanta defines itself as a visionary in the fields of data management and data cataloguing solutions and methodologies. It was founded in 2008 in the Czech Republic by a young R&D team, with the firm idea to effectively utilise all information assets within an organisation.
This conviction impressed Alteryx, which bought the European company on 6 June 2017. The amount of the transaction was not made public.
"Our teams share a common vision to make the world a better place. data and analysis to be more accessible to everyone. Our unified platform will allow us to find critical information and solve complicated problems, providing an exciting analytics experience for our users," said Tomás Barta, CEO of Semanta.
3. Yhat
Yhat was founded in 2013 and is based in New York. The startup provides an end-to-end data science platform. to develop, implement and manage real-time decision making APIs. This removes the IT hurdles involved in cloud-based data science, such as server configuration and setup.
The acquisition was confirmed on the same day as the Semanta deal, for which the amounts involved are also unknown.
"The integration of Yhat technology into the Alteryx platform will enable business users to deploy and manage workflows and analytical models in a self-service environment. with minimum codingwhile continuing to serve our growing technical audience of data scientists," the company's founders said in a statement.