1010data, the Big Data analytics platform has just been acquired by Advance/Newhouse for $500M. Already providing service to over 750 of the biggest retail and manufacturing companies, the acquisition will provide 1010data the resources to market and grow its integrated cloud data platform offering even further. Currently the platform has analyzed 21 trillion rows of data to deliver actionable insight efficiently. We can only imagine what the future will bring with this new marriage between the two companies.
Today, CEO and cofounder Sandy Steier take us to take us through through their journey from a small startup to NYC’s latest acquisition.
Tell us about your service.
- Big Data Discovery and data sharing that enable organizations to acquire, analyze, share, and monetize Big Data on a single, scalable platform.
- An integrated Data Cloud, encompassing public, third-party and unique, disruptive data sets, that enables better decision-making through data enrichment and sharing.
- A complete platform for distributing Big Data applications developed by third-parties.
Gaining actionable insight from Big Data requires both access to all relevant data and the best analytical tools to analyze it. 1010data is a complete solution that provides both. In fact, it’s the only solution that serves the entire gamut of data insight needs, from Big Data Discovery to enterprise reporting to the sharing of Big Data among disparate organizations. More than 750 of the world’s largest retail, manufacturing, financial services, and other enterprises trust us to manage and analyze over 21 trillion rows of data because of our proven ability to deliver actionable insight more quickly, easily and inexpensively than any other solution.
Who acquired you and what was the acquisition process like?
We were acquired by Advance/Newhouse, a global, diversified private media company that operates Bright House Networks, Condé Nast magazines such as the New Yorker, Vogue, Vanity Fair, and Wired, local media companies offering 30 newspapers and 12 websites in 10 different metro areas and states, American City Business Journals, which publishes business journals in 40 cities, and holds a significant interest in Discovery Communications, Inc. and Reddit, Inc.
Given that it was the right time, we hired a banker and ran a process that got us in touch with a number of potential acquirers both including strategic and financial buyers. Advance had independently approached us a year ago and immediately became active in the process.
What factors about your business led Advance/Newhouse to consider the acquisition?
Advance/Newhouse is a company that looks to invest in good businesses, operating in growth sectors, where they like the management team, and believe in the company. 1010data had several things going for it:
- We are in the data and analytics space, which is hot and will become more and more important.
- We have been doing well, are well organized, and have a vision for future growth.
- We are really in the information business as much as the tech business, which resonated well with Advance/Newhouse since they are also in the information business.
What factors about 1010data influenced your decision to be acquired?
We have been targeting 2015 for a couple years now, given our projections of where things were going. And, in fact, three things came together that made the transaction worth doing:
- We have been growing very well organically, i.e. without primary capital, but we could grow even more with additional capital.
- The market is good.
- We have specific ideas as to how to use additional capital.
What are your plans going forward?
Given the fact that we have been self-funded which in certain circumstances has limited our ability to properly fund our marketing and sales efforts, the acquisition removes this issue.
Additionally, we need to expand our channel partner efforts. It’s a great way to grow the business and we haven’t focused sufficiently on partners in the past.
Expect to also see us to invest further in the product.
What advice can you offer companies in New York that are building their businesses?
Growing a company is certainly not an easy proposition and I’m humbled by how successful we have been in building 1010data to where it is today. There have been a few things that I think helped keep us successful and have allowed us to zig when others have zagged. First, run your business as a going concern. 1010data has been profitable since 2005 and this has given us an incredible amount of flexibility with respect to how we run the business. Second, adapt to changing markets and new information. Lastly, hope for a little luck – it never hurts.