SingleStore agrees to growth buyout by private equity firm

BREAKING -- SingleStore on Wednesday revealed it agreed to a growth buyout led by private equity firm Vector Capital Management.

Based in San Francisco, database vendor SingleStore provides a platform that enables customers to quickly ingest data from various sources to fuel near real-time decision-making. Competitors include fellow database specialists such as MongoDB and Couchbase, as well as tech giants providing database capabilities such as Oracle.

Financial terms of the deal, which remains subject to due diligence and other customary closing conditions, were not disclosed.

A growth buyout is an investment rather than a takeover. Under a growth buyout, a private equity firm making an investment acquires a significant stake in an established company -- often a minority one -- infusing it with capital and strategic support, rather than take full control.

Under the terms of SingleStore's growth buyout, CEO Raj Verma will continue to lead the company along with the remainder of the vendor's management team. In addition, long-term SingleStore investors Dell Technologies Capital, Google Ventures, IBM and REV Venture Partners will remain investors in SingleStore.

Sanjeev Mohan, founder and principal of analyst firm SanjMo, said there are pros and cons to SingleStore's growth buyout. One positive is the potential for Vector Capital Management to enable SingleStore to expand its capabilities by acquiring other companies, as Thoma Bravo has enabled Qlik to expand through acquisitions in recent years.

Vector Capital is probably going to acquire companies and turn SingleStore from a database into more of a data platform.

"Vector Capital is probably going to acquire companies and turn SingleStore from a database into more of a data platform," he said.

One possibility would be to add an extract, transform and load vendor, Mohan continued. Another would be buying an agentic AI company so that SingleStore could serve as the underlying database for an agentic AI platform.

"That way, potential customers wouldn't just be buying a database," Mohan said. "They'd be buying an agent platform enabled by SingleStore."

However, on the negative side, the growth buyout could be a sign that, despite reporting 34% growth in annual recurring revenue during the second quarter of fiscal 2026, SingleStore does not have a strong outlook, Mohan continued.

"If the company had such tremendous growth and such a tremendous product, it would not need to be bought out," he said. "The fact that it is being bought out is because it is very challenging for independent software vendors to differentiate in this market. Everyone is touting similar capabilities. The fact that this needed to happen shows that they couldn't do it alone."

Before agreeing to the growth buyout, SingleStore raised $464.1 million in funding, including a Series F round of $116 million in 2022.

This story will be updated.

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.