ThoughtSpot acquires business intelligence firm Mode Analytics for $200 mn

Artificial intelligence analytics firm ThoughtSpot announced Tuesday that it has signed an agreement to acquire business intelligence firm Mode Analytics for $200 million, in a move expected to double its client base.

ThoughtSpot expects the deal to bring its annual recurring revenue (ARR) above $150 million and double its customer base. The acquisition will also expand ThoughtSpot’s presence in India to Kolkata and 31 Mode Analytics employees will now appear on ThoughtSpot’s listings in this city.

“With minimal customer overlap, the deal will create new opportunities for each company to bring their products to customers, while broadening the positioning across ThoughtSpot’s international market presence, broad channels and partner alliances,” ThoughtSpot said in a press note.

Over the past fiscal year, the business analytics company’s SaaS ARR doubled. The company supports global organizations like Verizon, CVS, Anthem, Capital One and Snowflake, as well as Comcast and digital natives like Wellthy, Modern Milkman and Huel, making more efficient use of their data in the cloud.

According to ThoughtSpot, the two companies’ combined analytics tools will transform business intelligence with generative AI and deliver business value quickly, securely, and at scale.

The Mountain View, California-based company has announced plans to invest $150 million in India by 2027. Currently, it has R&D teams in Bengaluru, Hyderabad, and Trivandrum covering engineering, partner engineering, design, and operations. The company plans to increase its number of employees in India by 30 percent over the next five years.

“For far too long, data teams have been held back by the recent generation of outdated data visualization tools like Tableau that have forced them to endlessly tweak and update dashboards. With this acquisition, we are giving both data teams and business users the tools they need to efficiently transform data. and speed into insights and those ideas into action,” said Sudhesh Nair, CEO of ThoughtSpot.

Upon closing of the acquisition, Mode will become a wholly owned subsidiary of ThoughtSpot. The acquisition is subject to usual closing conditions, including receipt of Mode shareholder approval, and is expected to close later this year.

“Today we mark the beginning of an exciting new chapter, not just for Mode but for the modern dataset, which has been sorely lacking in a modern business intelligence platform – until now. As part of ThoughtSpot, we will help increase the impact of data teams on business, empowering them to deliver credible insights powered by artificial intelligence for their organizations quickly.”