Google to acquire analytics startup Looker for $2.6 billion
Google made a big splash this morning when it announced it’s going to acquire Looker, a hot analytics startup that’s raised over $280 million. It’s paying $2.6 billion for the privilege and adding the company to Google Cloud.
Thomas Kurian, the man who was handed the reigns to Google Cloud at the end of last year sees the crucial role data plays today for organizations, especially as they move to the cloud. “The combination of Google Cloud and Looker will enable customers to harness data in new ways to drive their digital transformation,” Kurian said in a statement.
Google Cloud has been mired in third place in the cloud infrastructure market, and grabbing Looker gives it an analytics company with a solid track record. The last time I spoke to Looker, it was announcing a hefty $103 million in funding on a $1.6 billion valuation. Today’s price is nice even billion over that.
As I wrote at the time, Looker’s CEO Frank Bien wasn’t all that interested in bragging about valuations though. He wanted to talk about what he considered more important numbers. “He reported that the company has 1,600 customers now and just crossed the $100 million revenue run rate, a significant milestone for any enterprise SaaS company. What’s more, Bien reports revenue is still growing 70 percent year over year, so there’s plenty of room to keep this going.”
Bien saw today’s deal as a chance to gain the scale of the Google cloud platform, and as successful as the company has been, it’s never going to have the reach of Google Cloud. “Together, we are reinventing what it means to solve business problems with data at an entirely different scale and value point,” he said in a statement.
Perhaps, it’s not a coincidence that Google went after Looker as the two companies had a strong existing partnership and 350 common customers, according to Google.
Per usual this deal is going to be subject to regulatory approval, but the deal is expected to close later this year if all goes well.