CDW’s $525m acquisition of Databricks-backed Lovelytics takes aim at data roadblocks slowing AI

The buyout comes as customers look to turn fragmented data into measurable business outcomes for their increasing use of AI

CDW this week unveiled plans to acquire Lovelytics, a close Databricks channel partner, to improve its ability to transform data for customers’ growing use of AI.

The takeover, which is valued at about $525m (£387.8m), is slated to close some time this month.

Virginia-based Lovelytics offers a wide range of services around data migration, data governance, data engineering and data visualisation.

The company also has deep experience in GenAI, machine learning, machine learning operations (MLOps) and LLM operations (LLMOps).

Founded in 2017, Lovelytics claims to be the first consulting partner backed by Databricks Ventures. The company was also backed by Interlock Equity.

Christine Leahy, chair and CEO of CDW, emphasised in a prepared statement the importance of data to the Illinois-based solution provider’s customers.

"There is no AI strategy without a data strategy,” Leahy said.

“As our customers move from AI pilots to execution, that journey runs directly through their data. Together, Lovelytics and CDW will help organisations turn data into a strategic asset, accelerating AI adoption, improving decisions and driving stronger business and mission outcomes."

CDW execs were unavailable to provide further information about the acquisition.

However, a company spokesperson told CRN that data is one of the biggest barriers organisations face when trying to turn their AI investments into real business outcomes.

“We really see data as the tip of the spear for AI adoption and impact,” the spokesperson said.

“Lovelytics is one of the leaders in this space, and they have a fantastic business around data and AI services with deep advisory, implementation and delivery capabilities.

"That was one of the big factors driving the acquisition.”

The spokesperson was unable to provide any details regarding integration plans for Lovelytics, given that the acquisition is not yet closed.

The spokesperson said Lovelytics has around 600 employees, including employees in the US, Canada, Argentina and Colombia.

AI and the data management around AI are top of mind for many of CDW’s customers, the spokesperson said.

“What we’re really seeing is customers want to move from sort of just implementation to how do you really get business impact,” the spokesperson said.

This article originally appeared on CRN UK sister websiteCRN.