Datasite has acquired AI startup Blueflame to automate everything from investment memos to diligence prep—just as M&A pipelines heat up behind the scenes.
Key Takeaways:
- Datasite acquires Blueflame AI as part of its $500M expansion push
- Blueflame’s agentic AI will automate deal workflows like memo drafting and data summarization
- Security-first AI integration ensures customer data control and compliance
- Grata + Blueflame combo gives Datasite an end-to-end AI-powered M&A suite
- M&A prep surges 24% YoY, even as actual deals lag
Minneapolis-based Datasite is doubling down on its AI ambitions. The private equity-backed SaaS firm, known for powering major M&A transactions, has acquired Blueflame AI, an early-stage agentic AI startup, in a bid to further automate and streamline the dealmaking process.
“This move positions us to build one of the most powerful real-time agentic AI platforms for M&A,” said CEO Rusty Wiley in an exclusive conversation. Backed by CapVest Partners, Datasite is executing on a $500 million acquisition strategy to become the go-to intelligence layer for dealmakers worldwide.
Founded in 2023, Blueflame AI gained attention for its technology that connects fragmented datasets to automate complex tasks—think drafting investment memos, summarizing voluminous documents, and prepping due diligence reports in minutes. The company raised a $5 million Series A at a $50 million valuation just last year.
Now, Blueflame will be integrated into Datasite’s Intelligence unit alongside Grata, another AI-native acquisition. Together, they’ll form a fully-loaded platform for deal sourcing, diligence, and execution—all with AI running behind the scenes.
What’s striking is how Datasite is approaching AI integration: carefully and securely. “Our customers control what data an agent can see and what models it can run,” Wiley noted, addressing growing concerns about AI hallucinations and data leakage in sensitive financial environments.
Even as overall M&A volume remains flat, Datasite’s internal data suggests an upswing in deal prep—a 24% year-over-year spike in transaction uploads. Wiley believes firms are loading up their pipelines, waiting for the market to stabilize.
As part of its roadmap, Datasite will continue hunting for strategic acquisitions that enhance its tech arsenal and expand its global footprint. The goal? A one-stop AI-driven M&A command center that supports every stage of the deal.