Enterprise software company SAP has acquired Altiscale, a startup that provides a cloud-based version of the Hadoop open source software. The purpose is storage, processing, and analyzing various kinds of data, according to a report in VentureBeat. The news will be announced in some days.
The valuation of the deal is pegged at above $125 million. The investors will be receiving three to four times as much money as they have invested. Firms that have invested are Accel Partners, AME Cloud Ventures, Northgate, General Catalyst Partners, Sequoia Capital, and Wildcat Venture Partners.
Altiscale is a four-year-old startup that specializes in cloud-based Hadoop and Spark services. As such it technically competes against mainstream Hadoop services, such as Amazon Elastic MapReduce, Microsoft HDInight and Google Cloud Dataproc
With the acquisition of Altiscale, SAP will now have capacity and deep expertise for delivering Hadoop, Spark and high-scale data services. All these factors complement SAP’s cloud and IoT strategies while also cutting the cost of customers working with third-party vendors.
Altiscale has been around as a company since 2012 and is based in Palo Alto, California. Initially called VertiCloud, the company has since expanded to 90 employees. Customers include Devicescape, Glu Mobile, MarketShare, and ShareThis.