Datafleets Acquired by Liveramp for $68M+

LiveRamp Acquires DataFleets for $68 Million

LiveRamp has completed the acquisition of DataFleets, an innovative startup specializing in secure data utilization. DataFleets enabled organizations to leverage substantial volumes of encrypted data without the inherent risks associated with decryption or data transfer.

The enterprise data connectivity platform, LiveRamp, invested over $68 million in the acquisition. This represents a significant return on DataFleet’s $4.5 million seed funding, which was announced just last autumn.

Addressing the Need for Secure Data Analysis

DataFleets recognized a growing demand for the secure analysis of sensitive data, such as financial or medical records. This data is often used to train machine learning models.

These databases are typically large and complex, making data transfers challenging. Furthermore, decrypting and utilizing this data elsewhere introduces potential vulnerabilities to errors, misuse, and security breaches.

DataFleets’ Secure Intermediary Solution

The company developed a system employing software on both the data provider’s side – for example, a hospital or bank – and the client’s side, such as an analyst or AI developer.

This software acted as a secure intermediary, not for the sensitive data itself, but for the analytical systems and machine learning models the client wished to apply. Clients could then execute automated tasks, like data harvesting or model building, without ever gaining direct access to the underlying data.

Strategic Value for LiveRamp

This approach proved highly appealing to LiveRamp, a provider of data connectivity services to numerous large enterprise clients. The company announced the $68 million upfront payment for DataFleets during its recent earnings statement.

It’s important to note that this price doesn't encompass potential incentives or deferred payments, details of which are likely to remain confidential.

Integration and Future Prospects

The DataFleets brand will likely be phased out, though its existing customer base is expected to transition to LiveRamp. A recent customer, HCA Healthcare, announced a COVID-19 data sharing consortium utilizing DataFleets’ services.

This represents strong validation of the company’s approach, which was only recently commercialized, and is a valuable addition to LiveRamp’s healthcare client portfolio.

Expansion and Advocacy for Data Privacy

LiveRamp intends to leverage its expanded capabilities to broaden its operations into Europe, Asia, and Latin America in the coming year.

The company has also publicly advocated for the implementation of a comprehensive federal data privacy law, hoping to see progress under the current administration.