IBM buys Israeli data observability co Databand.ai for $150m

IBM Credit: Shutterstock
IBM Credit: Shutterstock

IBM says the acquisition of the Tel Aviv-based company will help it catch 'bad data' at source.

US tech giant IBM (NYSE: IBM) today announced it has acquired Israeli provider of data observability software company Databand.ai. IBM says the acquisition of the Tel Aviv-based company will help it catch 'bad data' at source and extends its leadership in observability to the full stack of capabilities for IT - across infrastructure, applications, data and machine learning, and is part of its efforts to bolster its hybrid cloud and AI skills and capabilities.

No financial details about the acquisition were disclosed but according to market sources IBM is paying $150 million for Databand.ai. Start-Up Nation Central says that Databand.ai has raised $15 million to date, including a Series A investment round of $14.5 million in 2020 led by Accel and Blumberg Capital. Others who will profit from the exit include the founders CEO Josh Benamram, CPO Victor Shafran, CTO Evgeny Shulman, as well as early stage investors F5, Bessemer Venture Partners, Genesis, and Differential Ventures.

IBM says that the company's 40 employees will join its R&D center in Israel. IBM said that the acquisition closed on June 27, 2022.

Databand.ai provides data observability software that helps organizations fix issues with their data, including errors, pipeline failures and poor quality. Data observability takes traditional data operations to the next level by using historical trends to compute statistics about data workloads and data pipelines directly at the source, determining if they are working, and pinpointing where any problems may exist. When combined with a full stack observability strategy, it can help IT teams quickly surface and resolve issues from infrastructure and applications to data and machine learning systems.

"Our clients are data-driven enterprises who rely on high-quality, trustworthy data to power their mission-critical processes. When they don't have access to the data they need in any given moment, their business can grind to a halt," said Daniel Hernandez, General Manager for Data and AI, IBM. "With the addition of Databand.ai, IBM offers the most comprehensive set of observability capabilities for IT across applications, data and machine learning, and is continuing to provide our clients and partners with the technology they need to deliver trustworthy data and AI at scale."

Benamram said, "You can’t protect what you can’t see, and when the data platform is ineffective, everyone is impacted -including customers. That’s why global brands such as FanDuel, Agoda and Trax Retail already rely on Databand.ai to remove bad data surprises by detecting and resolving them before they create costly business impacts. Joining IBM will help us scale our software and significantly accelerate our ability to meet the evolving needs of enterprise clients."

Published by Globes, Israel business news - en.globes.co.il - on July 6, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

IBM Credit: Shutterstock
IBM Credit: Shutterstock
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