Private equity firms KKR and Co and Clayton Dubilier and Rice LLC (CD&R) will take Cloudera Inc private for $4.7 billion, the cloud-based data analytics company said on Tuesday.
Shares of Cloudera hopped about 25% to $16.07 premarket, over the offer price of $16 per share in cash. The offer price addresses a premium of about 24% to Cloudera’s last close on Friday.
Cloudera, which gives cloud-based software and platforms to companies, including financial firms and government offices, considers Carl Icahn its biggest shareholder. The activist investor holds about 17.8% of Cloudera’s total shares, as indicated by Refinitiv data.
With an increased demand since the Coronavirus pandemic a year ago, significant cloud service providers including Amazon.com Inc, Alphabet Inc’s Google and Microsoft have been pushing to provide products like ones offered by Cloudera.
Bloomberg Law announced in June last year that Cloudera had been investigating a deal subsequent to getting takeover premium.
Cloudera, which likewise posted first-quarter results on Tuesday, dropped its income call planned on June 2 after the take-private offer. The company’s quarterly income rose 7% to $224.3 million and net loss per share was limited to 14 pennies.
The deal, expected to close in the second half of this year, includes a 30-day “go-shop” period, which permits the company to think about alternative offers, Cloudera said.
Morgan Stanley and Co is the financial adviser to Cloudera, while GCA Advisors, BofA Securities, William Blair and Co, Perella Weinberg Partners LP, Cowen and J.P. Morgan advised KKR and CD&R.
Independently, Cloudera said it would acquire software-as-a-service platforms Datacoral and Cazena in two exchanges to boost its public cloud offering. The details of the deal were not revealed.
