Fivetran's Tobiko Data acquisition aids data transformation
The purchase provides the data integration vendor with its own data transformation framework to augment capabilities it provides through integrations with third-party specialists.
Data integration specialist Fivetran made its second acquisition of 2025, buying Tobiko Data to add open source transformation capabilities aimed at preparing data for AI and analytics applications.
Financial terms of the acquisition, which Fivetran revealed this week, were not disclosed. In May, Fivetran acquired Census, which specializes in reverse extract, transform and load (ETL) capabilities and provides tools to send prepared data back to applications so it can be used to inform decisions.
Based in San Mateo, Calif., Tobiko Data raised $21.8 million in funding prior to the acquisition, including a Series A round of $17.3 million in June 2024. The company made a name for itself with SQLMesh and SQLGlot.
SQLMesh is an open source data transformation framework comparable to DBT Labs' tools. SQLGlot, meanwhile, is the open source engine underpinning SQLMesh that translates different SQL code dialects and detects coding errors so that teams working across disparate database platforms can collaborate.
Fivetran already provides data transformation capabilities, primarily through integrations with DBT Labs and Coalesce. The acquisition of Tobiko Data gives Fivetran its own data transformation capabilities and augments those offered through integrations with a framework built specifically for SQL data -- including semantic understanding of SQL -- so users can better prepare data for AI- and analytics-driven analysis.
Fivetran's acquisition of Tobiko Data is both a defensive and a power move.
Michael NiAnalyst, Constellation Research
Given that the acquisition adds capabilities that complement those Fivetran already provides and helps the vendor expand its offering as other data management vendors similarly expand theirs beyond specialties, Fivetran's acquisition of Tobiko Data is a strong strategic move, according to Michael Ni, an analyst at Constellation Research.
"Fivetran's acquisition of Tobiko Data is both a defensive and a power move," he said. "Fivetran built a defensive bulwark to deliver a single data platform as their current transformation partner, DBT, shifts business models and Snowflake and Databricks add built-in ETL features. At the same time, Fivetran just bought the missing piece to control the AI-ready pipeline."
Fueled by a network of nearly 1,000 connectors to original data sources, Fivetran, based in Oakland, Calif., provides ETL and data integration capabilities in addition to data transformation. To date, the vendor has raised $853.1 million in funding, most recently adding $125 million in May 2023.
Complementary capabilities
Fivetran's acquisition of Tobiko Data marks the fourth time the vendor has bought another company. In each case, the acquisition added capabilities Fivetran did not previously provide.
In June 2021, Fivetran acquired Teleport Data for an undisclosed sum, adding database replication technology that Fivetran turned into Teleport Sync to easily copy and move data from location to another. In September 2021, concurrent with raising $500 million in funding, Fivetran acquired HVR for $700 million in stock and cash to add change data capture capabilities.
Purchasing Census added to Fivetran's existing ETL capabilities, and the acquisition of Tobiko Data similarly advances Fivetran's current data transformation tools.
Together, the strategic acquisitions have helped Fivetran evolve from a specialized ETL provider to a more broad-based data platform vendor with tools that enable users to work with data from the time it gets ingested through its use in AI and analytics applications.
Like Ni, Matt Aslett, an analyst at ISG, noted the significance of Fivetran's acquisition of Tobiko Data given that it adds to Fivetran's current offerings.
"The acquisition of Tobiko Data boosts Fivetran's data transformation capabilities," he said, noting that transformations using Fivetran are currently performed in the platform the data is located through integrations with data transformation specialists. "The acquisition will provide the company with its own transformation engine and modeling capabilities."
While Fivetran and Tobiko Data are seemingly a strong fit, there is always the possibility it will be difficult to integrate Tobiko Data's technology with Fivetran's or that the cultures of the companies will clash. In addition, because Fivetran did not disclose the purchase price, there is no way to know how the purchase affects the vendor's financial state.
Meanwhile, specific to Fivetran's acquisition of Tobiko Data, there are now questions surrounding what the deal means for Tobiko Data's open source technology, according to Aslett.
"Existing users of SQLMesh and SQLGlot will likely be asking questions about the licensing plans, given that both are open source and Fivetran does not have a track record in open source licensing," he said.
Ni similarly raised concerns about the potential clash between Fivetran's culture and that of open source users while also noting that the technological integration of Tobiko Data's tools could be tricky.
"The biggest risk factors are integration execution and managing the open source community," he said. "Fivetran needs to integrate Tobiko's technically sophisticated, open source team [which could expose] potential mismatches in engineering approaches and timelines. Fivetran will also need to strike a balance between being open and being competitive with other vendors in the data stack."
Next steps
With many data management vendors evolving beyond a single specialty, Fivetran would be wise to continue to improve its nascent data transformation capabilities to better compete with other data platforms, according to Ni.
The vendor's competition has expanded from ETL specialists to now broad-based data management vendors including Databricks and Snowflake as well as open source offerings, he noted. The acquisition of Tobiko Data will help Fivetran contend by adding native transformation and semantic depth, but there's more the vendor can do.
"To win long term, Fivetran should double down on governed, cost-efficient and interoperable transformation," Ni said. "That means tighter integration with semantic layers, support for streaming and real-time pipelines and continued openness, allowing customers to mix and match tools without fear of lock-in."
Aslett, meanwhile, advised that Fivetran quickly let Tobiko Data users know its plans for SQLMesh and SQLGlot, both in terms of their access and their integration into Fivetran's existing platform.
"Looking ahead, [Fivetran] will need to articulate its licensing strategy as well as its roadmap for integration and support for multiple transformation engines," he said.
Eric Avidon is a senior news writer for Informa TechTarget and a journalist with more than 25 years of experience. He covers analytics and data management.
