IBM is set to acquire a company that is betting on the high-frequency data analytics market.
Mountain View, Calif.-based IBM said Tuesday that it has signed a preliminary deal with cloud analytics startup Sterlite Technologies to acquire its data analytics business.
The deal includes a $900 million upfront payment and a $500 million cash payment in 2019, according to a person familiar with the matter.
Sterlite, based in Palo Alto, Calif., is best known for developing data analytics solutions for big-data clients like Facebook, Google and Oracle.IBM also said in a statement that it was acquiring a subsidiary called Dynamatic Technologies, which is based in Singapore.
Dynamatic is the parent company of MongoDB, a database that’s used to store the world’s data.”IBM is acquiring Dynamatic to help us expand our data analytics offerings,” IBM said.
“We believe the acquisition will further our ability to provide data analytics products and services for our customers in the long term, and to enable our data and analytics team to better understand and manage their business processes.”IBM’s acquisition of Sterlite comes after IBM acquired DataMate, another data analytics startup.
Both companies have raised money from venture capital firms, and their founders have been identified as executives at Google.
IBM and Sterlite also are partners on a number of other technology deals.
IBM has also invested in cloud technology company Databricks.
Mongobricks, which provides a database of human beings’ online relationships, is part of IBM’s strategy to increase its data-intensive workloads, according.
IBM said that the deal would create a more diverse and competitive cloud business and that Sterlite would help IBM achieve its goal of having 50 percent of its data and business data processed in-house by the end of 2019.