KKR, CD&R Strike $5.3 Billion Deal to Buy Cloudera

CD&R, a leading provider of professional services to the technology industry, announced that it has signed an agreement with KKR and its affiliates, LP, to purchase Cloudera Inc., a provider of enterprise data management software and services, for $5.3 billion. The acquisition is expected to close in the second half of 2018, subject to customary closing conditions. CD&R will finance the acquisition with cash on hand and borrowings under the existing credit facilities. Additionally, the Company expects to issue about $1 billion of common equity.

Cloudera, a software company that makes a platform used by many of the world’s leading internet companies, has agreed to be acquired by private equity firm KKR and CD&R. The companies plan to pay $5.3 billion in cash for Cloudera, which is based in Palo Alto, California.

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Cloudera’s shares have soared since its IPO in 2017.

Photo: Michael Nagle/Bloomberg News Updated June 1, 2021 at 7:48 a.m. Eastern Time Private equity firms KKR & Co. and Clayton Dubilier & Rice LLC have agreed to Cloudera Inc. CLDR 23.87%. for about $5.3 billion in a deal that would make the software company private. On Tuesday, the pair said they were willing to pay $16 a share for the cloud computing company, a premium of about 24% over the price at which the stock closed Friday. The Wall Street Journal reported Monday that the companies are close to a deal. Founded in 2008 by a group of engineers from the company Alphabet Inc. GOOG 0.76%. Google, Facebook Inc, Oracle Corp. ORCL 1.05%. and Yahoo Inc, Cloudera was one of the first players in the market for Hadoop, an open source software that can process large amounts of data quickly. But it has struggled to make the transition to the now-dominant public cloud, where it faces fierce competition from much larger companies, including the following Amazon.com Inc. AMZN – 0.14%. Amazon Web Services. Cloudera shares have soared since its stock market debut in 2017. They trade below the IPO price and are down about 8% this year.

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Latest news from business and traders. Nevertheless, recent results show that activity has improved. In March, Cloudera reported net income for the year ended December 31. Revenue for fiscal January was $869 million, up 9%, and operating margin was 17%, compared to a negative margin in the prior year. On Tuesday, the company said first-quarter sales were up 7 percent from the same period a year earlier. Activist investor Carl Icahn owns approximately 18% of the company’s stock and received two seats on the 2019 board of directors as part of the settlement agreement. The company also has Robert Bearden as CEO, who Tom Reilly, who resigned. Bearden was already a director of Cloudera and co-founder of Hortonworks Inc, an open source company that acquired Cloudera in 2019. The company said Mr Icahn has agreed to vote his shares in favour of the private equity deal. The agreement also includes a so-called go-shop period, which gives Cloudera 30 days to solicit higher bids from other buyers. Private equity firms, including KKR and CD&R, are buying software companies attracted by their predictable and growing cash flows. Last summer, KKR sold Epicor Software Corp. to a group led by CD&R for about $4.7 billion, including debt. Write to Miriam Gottfried at Miriam.Gottfried@wsj.com and Cara Lombardo at cara.lombardo@wsj.com. Copyright ©2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8 Appeared in the June 1, 2021 print edition as software maker Cloudera moves closer to a deal.

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