Datadog Acquires Eppo for $220 Million to Boost Product Analytics

Datadog has acquired Eppo, a startup specializing in feature flagging and experimentation, for $220 million, aiming to bolster its Product Analytics suite and provide developers with enhanced tools for building and scaling AI-driven applications. Eppo's integration will enable real-time user experience management, improved experimentation infrastructure, and facilitate the safe deployment of AI models by allowing teams to assess and compare outcomes efficiently. The merger is expected to create a comprehensive end-to-end product analytics solution, unifying product analytics, feature management, AI, and experimentation capabilities on one platform. Both companies emphasized that Eppo will continue supporting its current customers while expanding its reach under the new brand 'Eppo by Datadog.' Financial analysts remain optimistic about Datadog's outlook, citing strong growth, robust profit margins, and operational flexibility to pursue such strategic initiatives. Leadership from both Datadog and Eppo highlighted that the acquisition will foster a high-velocity, experiment-first culture and help businesses reduce risk while shipping high-quality products.