Private equity companies Clearlake Capital Group and Insight Partners have signed a definitive agreement to acquire software provider Alteryx for $4.4bn.
Under the agreement, which includes Alteryx’s debt, the technology company’s shareholders will be entitled to receive $48.25 in cash for each Alteryx Class A or Class B common stock held.
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Alteryx, which is listed on the New York Stock Exchange (NYSE), said the offer price is 59% premium to its closing stock price on 5 September 2023, the last day before reports of potential sale emerged.
Set up in 1997, Alteryx offers cloud-based and artificial intelligence-powered (AI) data analytics solutions to businesses to aid them in making informed decisions.
Currently, it caters to more than 8,000 clients such as Coca-Cola, Ford, Walmart, and Vodafone.
The company listed on the NYSE through an initial public offering in 2017. Following the deal, it will delist and become a privately owned company.
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By GlobalDataAs per media reports, Alteryx is facing competition from bigger players such as Oracle and Microsoft.
It has also been having difficulty in getting new business, which lowered its valuation and making it an acquisition target.
According to Alteryx CEO Mark Anderson, this deal would give the company more working capital, industry knowledge, and flexibility as a private enterprise.
Anderson added: “Together, we will make investments that matter most to our customers and accelerate our mission of harnessing the power of analytics to enable customers all over the world to transform data into a breakthrough.”
“Over the past several years, we have executed a comprehensive transformation strategy to enhance our go-to-market capabilities and establish a strong cloud and AI innovation roadmap. We are excited to partner with Clearlake and Insight for the next stage of Alteryx’s journey.”
Clearlake co-founder and managing partner Behdad Eghbali, and partner Prashant Mehrotra said: “As organisations become increasingly data driven and focused on utilising AI technology, we see a tremendous growth opportunity for Alteryx’s new AI products and feature-rich cloud solutions and to further its reputation as an innovator in the data preparation and data analytics markets.
Subject to regulatory approvals and other closing conditions, the transaction is expected to complete in the first half of 2024.
Recently, Alteryx launched a new business unit, called Alteryx Public Sector, to cater to need of the US public sector clients.
