Databricks, a leading software company that helps businesses store, manage, and analyze large amounts of data, has announced the acquisition of Neon, an open-source database startup, for $1 billion. This acquisition is part of Databricks’ strategy to further strengthen its cloud-based data infrastructure capabilities.

Databricks has strong ties to Amsterdam and the Centrum Wiskunde & Informatica (CWI). The company operates its largest R&D hub outside the United States in the city, with approximately 280 employees. This location has its roots at CWI, where a team of developers, including former employees of the CWI spin-off Vectorwise, laid the foundation for Databricks’ Amsterdam office.

For years, CWI and Databricks have collaborated on various research projects. According to Databricks: “We have established close collaborations with local universities and research centers, translating groundbreaking research into products. An example of this is our partnership with Centrum Wiskunde & Informatica (CWI), a world leader in research on distributed systems and databases.”

The acquisition of Neon aligns with Databricks’ broader strategy to strengthen its position in data infrastructure and analytics. Founded in 2021, Neon is a rapidly growing open-source database startup that leverages cloud-native technologies to make databases more efficient and scalable.

Neon’s leadership has welcomed the acquisition, highlighting that the partnership with Databricks will take their technology to the next level. For Databricks, the acquisition brings Neon’s expertise in cloud-based database solutions, while Neon benefits from Databricks’ global reach and resources.