Cloudera stock jumped as much as 24% on Monday after the software company inked a $5.3 billion deal with private-equity firms KKR & Co. and Clayton Dubilier & Rice to go private.
The private equity firms are set to pay $16 a share in cash to Cloudera investors as a part of the deal, representing a roughly 24% premium to Friday's closing price.
"We are also pleased to announce our transaction with CD&R and KKR. This transaction provides substantial and certain value to our shareholders while also accelerating Cloudera's long-term path to hybrid cloud leadership for analytics that span the complete data lifecycle - from the Edge to AI," Rob Bearden, Cloudera's chief executive officer, said in a statement.
"We believe that as a private company with the expertise and support of experienced investors such as CD&R and KKR, Cloudera will have the resources and flexibility to drive product-led growth and expand our addressable market opportunity," the CEO added.
The company provides an enterprise data cloud platform to customers like the Bombay stock exchange, the US census bureau, and Vodafone, among others.
Billionaire and activist investor Carl Icahn, who owns roughly 18% of Cloudera and was awarded two board seats in 2019, has agreed to vote in favor of the deal, according to the company.
The company reported fiscal 2022 first-quarter revenue of $224.3 million on Monday, an increase of 7% versus the same period last year.
GAAP losses also narrowed in the first quarter to $33.8 million from $55.8 million a year ago.
Operating cash flow swelled to $162.2 million as well, compared to $68.4 million for the first quarter of fiscal 2021.
Due to the announced transaction with CD&R and KKR, Cloudera has canceled its earnings conference call previously scheduled for June 2, 2021, and will not provide financial guidance for the second quarter of fiscal 2022 or any further financial guidance with respect to the fiscal year 2022.
Cloudera stock traded up 23.98% as of 9:57 a.m. ET on Monday.