AlphaSense has achieved a billion-dollar valuation in a fresh funding round, agreeing to privately buy business rival Tegus in a $930 million deal.
Market intelligence company AlphaSense has been steadily increasing its valuation over the past year, having just reached the $4 billion mark.
The New York-based company surpassed $200 million in annual recurring revenue in April 2024. In 2023, it raised $150 million in a Series E financing round that valued the company at $2.5 billion.
AlphaSense has operated as a search platform since 2011 and is used by more than 2,000 leading organizations. It harnesses the power of artificial intelligence (AI) to help businesses make smarter decisions by delivering insights from an extensive range of public and private content.
The company boasts many clients, including SAP and Alphabet’s Google.
Leading businesses continue to invest in AI
The recent $650 million capital raise was co-led by investment firm Viking Global Investors and merchant bank BDT & MSD Partners, and existing investors Alphabet’s CapitalG and Goldman Sachs Alternatives participated.
This funding round also included new investors, including J.P. Morgan Growth Equity Partners, SoftBank, Blue Owl, and Alkeon Capital.
The company has been built on AI, machine learning, and natural language processing (NLP), which speeds up time-to-insight and enhances the qualitative research process. It enables its users to extract the most important insights and understand underlying nuances and meanings within a text.
AlphaSense’s valuation boost is partly due to its agreement to acquire one of its competitors, Tegus, for $930 million. As a leading research, financial data, and workflow tool provider, Tegus can offer financial data insights that include coverage of more than 35,000 public and private companies. These cover numerous consumer goods, energy, life sciences, technology, and telecom industries.
The acquisition hopes to bring Tegus’ data to AlphaSense’s platform, empowering business and financial professionals to make smarter decisions through AI-driven market intelligence.
“This transaction marks a pivotal moment for AlphaSense in our mission to help businesses and investors make better decisions with confidence and speed,” comments Jack Kokko, Founder and CEO at AlphaSense. “I am thrilled to join forces with the Tegus team as a significant leap forward in furthering our mission, adding top-quality content on public and private companies, and enhancing our ability to deliver even more comprehensive insights to our customers worldwide.”
Harnessing AI to power business transformation
For more than a decade, AlphaSense has been working to transform the research process, enhancing its innovations with AI technology. This has led to the company holding a trustworthy business content portfolio.
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Both companies will collaborate to further enhance growth, innovation, and content expansion. Through this acquisition, AlphaSense users stand to benefit from the addition of Tegus’ extra financial data content alongside AlphaSense’s AI and search capabilities. As a result, the combined user base will make it easier for customers to extract tailored insights to suit their business needs.
The news comes amid several company milestones for AlphaSense. The company has drastically doubled its revenue in less than two years and opened a new hub in Singapore to continue expanding across the Asia-Pacific (APAC) region.
