Cloudera agrees to be acquired at 24% premium

By: Ajay Pal Singh
Ajay Pal Singh
Ajay worked at Tata Motors in project planning before discovering his passion for stocks. Today, he lives in Canada… read more.
on Jun 1, 2021
  • Cloudera agrees to be acquired by investment firms — Clayton, Dubilier & Rice (CD&R) and KKR.
  • The deal values the company at $5.3 billion or $16/share, a 24% premium to the closing price on May 28, 2021.
  • The transaction is expected to be completed in the second half of the year.

Cloudera Inc. (NYSE: CLDR), a provider of enterprise data cloud platform, announced today that it has entered into a definitive agreement to be acquired by investment firms — Clayton, Dubilier & Rice (CD&R) and KKR. This will be an all-cash transaction. The deal values the company at $5.3 billion, which equates to $16 per share, representing a 24% premium to the closing price as of May 28, 2021.

The transaction is expected to be completed in the second half of the year. The deal has been approved by Cloudera’s Board and will next be put to a shareholder vote. Icahn Enterprises, which owns 18% of the company’s outstanding shares, has agreed to vote in favor of the deal.

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Shares of the company are up by more than 20% in morning trading. The stock is up by approximately 23% year-to-date and also, for the trailing one-year period.

What Cloudera’s CEO said on the deal?

Going into the merits of becoming a private company and the advantage of having the backing of big investors, Rob Bearden, CEO of Cloudera said: 

“We believe that as a private company with the expertise and support of experienced investors such as CD&R and KKR, Cloudera will have the resources and flexibility to drive product-led growth and expand our addressable market opportunity.”

What the acquirers said on the deal?

Jeff Hawn, Operating Partner at the private investment firm CD&R, will serve as Chairman of the company upon the completion of the transaction. Hawn said:

“We very much look forward to working with Cloudera as it continues to execute its long-term transformation strategy. The company has made significant progress establishing the Cloudera Data Platform (CDP) as a leader in hybrid and multi-cloud analytics, and we believe that our experience and capabilities can offer valuable support to accelerate expansion into new products and markets.” 

John Park, KKR Partner and Head of Americas Technology Private Equity, said the following on the deal:

“We have followed the Cloudera story closely for a number of years and are pleased to be supporting its mission of helping companies make better use of their data in the ever-evolving hybrid IT environment. We are excited to contribute to Cloudera’s accelerated innovation efforts as a private company.”

KKR brings its experience of growing technology businesses including GoDaddy, Internet Brands, Epicor, BMC and Optiv to Cloudera.

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