CAPEX.com
CAPEX.com

Article Hero

KKR and CD&R to take Cloudera private for $4.7 billion

1622555872.png
Miguel A. Rodriguez
Miguel A. Rodriguez
01 June 2021
Cloud-based software provider, Cloudera to be taken private in the second half of the year

Founded in 2008 by a group of engineers from Google, Facebook, Oracle, and Yahoo, Cloudera was one of the early players in the open-source framework Hadoop.     Through it, large amounts of data are processed quickly. Cloudera, catering to industries including finance, healthcare, and government agencies, saw an uptick in demand during the pandemic. Behemoths like Amazon.com, Alphabet, and Microsoft have invested in software products that are Cloudera’s speciality.

Cloudera’s largest shareholder is Carl Icahn, an activist investor who has explored the company’s potential sale since mid-2020. Icahn’s desire finally came true earlier today. Private equity firms KKR and Clayton Dubilier & Rice will take Cloudera private at a valuation of approx. $4.7 billion. According to Cloudera’s SEC filing, it received a $16 per share cash offer, representing a premium of over 24% over the last closing price on Friday.

The deal is expected to be closed in the second half of the year and includes a 30-day “go-shop” period during which Cloudera can explore alternative offers.

After the news hit the wires, Cloudera stock price surged more than 24% in pre-market trading.

Sources: bloomberg.com, cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.