Highlights:

  • San Francisco-based Mode raised USD 83 million in fundraising before the acquisition.
  • ThoughtSpot claims that Mode’s technology will help it improve its current Python, R, and SQL capabilities.

ThoughtSpot Inc., a business intelligence software developer, disclosed acquiring its competitor, Mode Analytics Inc., for USD 200 million.

Investors in Mode Analytics are poised to benefit from the cash and stock deal. San Francisco-based Mode raised USD 83 million in fundraising before the acquisition, which is less than half of the price ThoughtSpot is paying to acquire the firm.

Based in Mountain View, California, ThoughtSpot provides a platform businesses can use to graph their data for better analysis. The startup claims that its technology can take in billions of rows of data. Users can visualize information from cloud databases, software-as-a-service offerings, and other sources.

Besides, Mode offers a platform for business data visualization. However, its platform’s feature set offers a variety of options that ThoughtSpot does not yet provide.

Both ThoughtSpot and Mode built their systems keeping non-programmers in consideration. Moreover, they provide functionality for technical teams with more complex needs. With the help of a tool called “data workspace,” offered by ThoughtSpot, engineers may create SQL queries and carry out studies using the Python and R programming languages.

Mode also provides comparable functionality. One of its main selling points is its platform’s ability to let users write a little piece of Python, R, or SQL code to analyze data and then display the findings in the same interface without switching tabs. ThoughtSpot claims that Mode’s technology will help it improve its current Python, R, and SQL capabilities.

The code-based analytics capabilities of Mode are well suited for, among other things, transforming unstructured business data into datasets that can be analyzed more quickly. After the agreement, ThoughtSpot’s natural language search tool will immediately have access to datasets developed with Mode. In other words, users can raise inquiries in simple English to identify relevant data points.

Sudheesh Nair, Chief Executive Officer of ThoughtSpot, said, “With this acquisition, we’re giving both data teams and business users the tools they need to efficiently and quickly turn data into insights and those insights into actions.”

ThoughtSpot anticipates that the deal will improve its platform’s overall capacity. The company claims that spreadsheet-based data analytics capabilities will also advance. Additionally, ThoughtSpot intends to update its AI-based tool for data visualization.

The company asserts that in the last year before this acquisition, the annual recurring revenue of its SaaS business doubled. ThoughtSpot expects that by acquiring Mode, its regular yearly income would surpass USD 150 million.

The transaction, according to ThoughtSpot, will double its customer pool. It mentioned that there is “very little customer overlap” with Mode, which could lead to new upselling opportunities. Mode’s customers could purchase ThoughtSpot’s platform and vice versa.

Both companies anticipate finalizing the agreement later this year.