Enterprise data cloud company Cloudera has entered into a definitive agreement to be acquired by affiliates of the private investment firms Clayton, Dubilier & Rice (CD&R) and KKR in a $5.3 billion all-cash transaction, the company announced June 1.
The transaction, which is expected to close in the second half of 2021, focuses on accelerating Cloudera’s long-term path to hybrid cloud leadership, as a private company, for analytics that spans the complete data lifecycle, according to Rob Bearden, chief executive officer of Cloudera.
“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,” Bearden said in a news release.
The board of directors of Cloudera has approved the transaction unanimously and recommends its shareholders approve the transaction and adopt the merger agreement.
Cloudera says the closing of the deal is subject to customary closing conditions, including the approval of its shareholders and antitrust approval. The agreement includes a 30-day “go-shop” period expiring on July 1, 2021, during which the board says it will have the right to initiate, solicit and consider alternative acquisition proposals from third parties – with an additional 10 days to negotiate a definitive agreement with qualifying parties.
In a previous interview, Gary Green, vice-president of strategic partnerships at Cloudera, said the company was investing heavily in data and analytics, knowing that when the next pandemic – or other global disruption – occurs, a solid IT foundation will be needed.
Organizations have become overwhelmed with a new surge of data due to all business being conducted online, and Green said conversations about what to do with that data will require precision planning. Platforms that weave together IT and business practices are highly sought after.
Of the 12 largest tech acquisitions in the U.S. this year alone – excluding special purpose acquisition companies – seven of them have been orchestrated by private equity firms, according to data from FactSet obtained by CNBC.