By Krystal Hu

(Reuters) -Data startups Fivetran and dbt Labs will merge in an all-stock deal, creating a combined data infrastructure company with nearly $600 million in annual revenue, the two companies told Reuters.

The deal is structured as an all-stock exchange based on an agreed ratio tied to revenues and growth rates, Fivetran Chief Executive George Fraser said in an interview. The combined entity is worth more than its last private valuation, Fraser said, but added that the valuation will ultimately be determined by the market.

Fivetran was last publicly valued at $5.6 billion in September 2021, while dbt Labs was valued at $4.2 billion in a Series D round in February 2022. The companies share some investors, including Andreessen Horowitz.

Upon closing, Fraser will serve as CEO

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