SAP To Acquire Dremio, Prior Labs For Undisclosed Sum
(RTTNews) - SAP SE (SAP), the enterprise applications and solutions major, Monday announced that it is acquiring Dremio, a data lakehouse platform, and Prior Labs, a Tabular Foundation Models company. Financial terms of both the deals have not been disclosed.
SAP said both the deals are pending regulatory approval.
With the acquisition of Dremio, SAP is expecting to expand its Business Data Cloud's ability to combine SAP and non-SAP data to more effectively run analytical and AI workloads in real time.
The Dremio lakehouse platform is serverless and elastic, scales up automatically when demand spikes and scales down when it subsides implying that there is no fixed capacity to provision and no performance ceiling.
The transaction is surmised to close in the third quarter.
With the acquisition of Prior Labs, SAP hopes to use TFMs to make accurate predictions on structured business data and accurately predict business outcomes based on tabular data such as payment delays, supplier risks, upsell opportunities, customer churn risk and more.
Prior Labs will continue to operate as an independent entity after the acquisition, with SAP committing to invest more than 1 billion euro over the next four years with the intention to scale it into a globally leading frontier AI lab for structured data. The transaction is expected to close in the second quarter.
In pre-market activity, SAP shares were trading at $172.19, up 0.86% on the New York Stock Exchange.
