Palo Alto, Calif.-based Palantir Technologies, the $9 billion data startup that aids government agencies, went on an acquisition spree this week. The company purchased social analytics startup, Poptip, as well as app-making startup, Propeller.
Continue Reading Below
“The marriage between leading big data analytics cloud software leader Palantir, and unstructured social 'conversational' big data analytics upstart Poptip, makes strategic sense," Sam Hamadeh, CEO of private research firm PrivCo, says. “Palantir can add one more offering to push through its enterprise sales force to clients, allowing them to track trends on their brands on social media such as Twitter chatter through Poptip's social analytics.”
Having previously only purchased one company, Palantir acquired more companies this week than it had in all of its ten years, suggesting a change in strategy. The data company with government ties flies relatively under the radar.
“Given Palantir's finances, cash and revenue run rate, this week's two acquisitions are M&A baby steps,” Sam Hamadeh, CEO of private capital research firm Privco, says. “Expect bigger acquisitions as Palantir acclimates to make acquisitions and integrating them.”
Despite its sky high valuation and $896 million in venture capital, Palantir has downplayed an interest in going public in the near future. Palantir’s investors include Yelp (YELP) co-founder Jeremy Stoppelman, Founders Fund and In-Q-Tel, a not-for-profit firm that invests in startups that aid the CIA.
Although many of the government uses of its data are kept secret, Palantir says it helps with anti-fraud, intelligence and cyber security. The company says on its website it connects data, technologies, humans and environments.