Cloudera And Hortonworks Combine In All-Stock Merger

Cloudera, Inc. and Hortonworks, Inc. announced on Wednesday that they are combining in an all-stock merger of equals, a deal worth $5.2 billion. The merger will create the world’s leading next-generation data platform provider and establish the industry standard for hybrid cloud data management, accelerating customer adoption, community development, and partner engagement.

Cloudera, Inc. and Hortonworks, Inc. announced on Wednesday that they are combining in an all-stock merger of equals, a deal worth $5.2 billion. The merger will create the world’s leading next-generation data platform provider and establish the industry standard for hybrid cloud data management, accelerating customer adoption, community development, and partner engagement.

Hortonworks, a data software company which designs software to manage data like IoT and machine learning, went public four years ago, emerging from once soaring Hadoop. Cloudera followed last year. Under the terms of the agreement, Cloudera stockholders will own approximately 60% of the equity of the combined company and Hortonworks stockholders will own approximately 40%, in which each partner gets equal ownership.


Source: hortonworks.com

Tom Reilly, Chief Executive Officer at Cloudera, stated, “Our businesses are highly complementary and strategic. By bringing together Hortonworks’ investments in end-to-end data management with Cloudera’s investments in data warehousing and machine learning, we will deliver the industry’s first enterprise data cloud from the Edge to AI."

This compelling merger will create value for our respective stockholders and allow customers, partners, employees and the open source community to benefit from the enhanced offerings, larger scale and improved cost competitiveness inherent in this combination.,” concurred Rob Bearden, Chief Executive Officer of Hortonworks.

The merger is looking forward to creating a superior unified platform and accelerate market development and fuels innovation in IoT, streaming, data warehouse, hybrid cloud, machine learning/AI. The combined companies bring together 2,500 customers and hence are also working towards enhancing partnerships with public cloud vendors and systems integrators.

And of course, the companies are also expecting to generate some significant financial benefits and an improved margin profile. Specifically, that will be approx. $720 million in revenue and over $500 million cash without debt.

To know more about the terms of transaction agreement for the merger, specified management and Board of Directors, you can read the press release here.