Attunity Ltd., a provider of information availability software solutions, has agreed to acquire Appfluent Technology, Inc., a provider of data usage analytics for big data environments, including data warehousing and Hadoop. The total purchase price is approximately $18 million, payable in cash and stock, with additional earn-out consideration based on performance milestones.
Appfluent's partners include Hadoop vendors, Cloudera, Hortonworks and MapR, as well as big data solution providers Cisco and CapGemini. Combined with Attunity's data integration software, Attunity will be able to provide more strategic solutions and expand its value to these big data partners as well as to others.
“This acquisition is strategic, synergistic, and will strengthen our leadership in the big data and Hadoop market. We also expect it to accelerate our revenue growth and to be accretive to earnings," said Shimon Alon, Attunity's chairman and CEO, during a conference call this morning with the investment community.
"With big data, enterprises around the world are actively looking for ways to manage the growth in the data volumes and deliver the analytics and high performance and enhance economics. The explosion in the demand for analytics and volumes of data are conflating to significant challenges for the enterprises in managing data growth, analytic performance, and increasing cost," he noted.
"What is compounding these challenges," he said, "is that organizations don’t know how they are actually using their data and without this in big data environments, how can they deal with the tremendous growth in volumes, exceeding 50% annually, coupled with more demand for analytics, and millions of dollars in costs to accommodate new capacity in existing systems?" When companies understand their data usage, he said, "they can then identify workloads and storage that can be moved to more effective platforms such as Hadoop.”
According to Attunity, with this acquisition, it will be able to offer a product suite that analyzes big data usage patterns, and then helps moves large data volumes and processing workloads to Hadoop, to help customers save on data storage and processing costs compared to traditional data warehouses.
Referring to industry analysts reports that Hadoop can save 70% or more of data storage and processing costs compared to traditional data warehouses, Alon said, “This savings can be in order of millions dollars annually for large enterprises. This is where Appfluent comes in and has been so successful. Appfluent delvers critical business and IT visibility with data usage analytics that enable enterprises to optimize the value, the economics, and the performance of their big data initiatives."
Appfluent is projected to generate approximately $7 million to $8 million over the 12 months following closing, a projection which Attunity says reflects strong growth attributable to increasing momentum in the business as well as new access to Attunity's sales and marketing teams.
The transaction, which is subject to customary closing conditions, is expected to close in the next couple of weeks. For more information, go to www.attunity.com.