Fivetran hits $5.6 billion valuation, enters agreement to acquire HVR

Fivetran has entered into a definitive agreement to acquire HVR, a provider of enterprise data replication technology, following the company's most recent funding round. The acquisition is reportedly a cash and stock deal valued at $700 million.

According to a statement, it will allow Fivetran to provide better database replication performance along with enterprise-grade security to address the growing market for modernising analytics for operational data associated with ERP systems, Oracle databases, and more.

Fivetran has also officially raised a $565 million Series D round, consisting of new and existing investors. The company has raised $730 million to date, and is now valued at $5.6 billion.

Andreessen Horowitz led this 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.

According to the company, 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 combined capabilities of Fivetran and HVR will enable modern analytics for business-critical data without compromising security, performance or ease of use, the company states.

Fivetran customers will gain access to a broader range of high-performance data replication solutions, including HVR's change data capture connectors and a secure, on-premise option for companies with legacy databases.

In addition, HVR's customers will have access to Fivetran's range of pre-built, fully managed data connectors and transformation capabilities.

Fivetran CEO George Fraser says, "HVR is a recognised 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 organisations that want to improve their analytics with a modern data stack.

"The funding gives Fivetran the resources to expand our capabilities across all functions of the business and continue to accelerate our growth globally.

HVR CEO Anthony Brooks-Williams says, "The secure and efficient movement of data is a foundational requirement for the modern organisation. HVR helps organisations to not only harness the power of that data, but also realise the potential of it.

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

Key investors also commented on the announcement.

Andreessen Horowitz general partner Martin Casado says, "Fivetran is a critical component of the modern data stack. Without an always-on, accurate, and reliable way to centralise data, global organisations aren't maximising the use of data or data infrastructure.

"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."

ICONIQ Growth general partner Matthew Jacobson says, "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.

"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.