Deal: PE Firms KKR, CD&R To Buy Cloudera For $5.3B
Two big private equity firms have teamed up to acquire Cloudera, a publicly-traded cloud analytics company. Those two firms are KKR and Clayton, Dubilier & Rice (CD&R), and they’ll pay $5.3bn in cash to buy Cloudera from public shareholders.
- The Cloudera acquisition is for $16 per share, a 24% premium to the company’s closing share price on Friday, the 28th of May, 2021.
- Cloudera’s go-private deal comes four years after its IPO in 2017. A year after it went public, it merged with a rival named Hortonworks in a $5.2bn deal.
- Cloudera was once a shining beacon in the cloud space but has gradually lost its shine. The Hadoop open-source data analytics framework that the company’s business is based on has lost out to other rival frameworks such as Apache Spark and put a hole in its business.
- A struggling tech company getting bought out by private equity firms is a scenario that’s been played out many times with Cloudera as the latest. As usual, the private equity owners will try to sift for value in the company with financial maneuvers.
- Cloudera’s major shareholders include famous activist investor Carl Icahn who owns an 18% stake in the company. For a stake he bought for around $300mn in 2019, he’s now set to get a near $1bn windfall from the company’s buyout.
- Cloudera’s takeover is expected to be completed in the second half of 2021.