Shares of Cloudera (NYSE:CLDR) surged 24% on Tuesday after the data analytics provider said it reached a deal to be acquired for $5.3 billion.
Private equity firms KKR (NYSE:KKR) and Clayton, Dubilier & Rice agreed to purchase Cloudera for $16 per share, a 24% premium to the stock's closing price on Friday. The all-cash transaction is expected to be completed in the second half of 2021, though it does include a 30-day "go-shop" period, during which Cloudera can solicit competing bids.
The deal would allow Cloudera to accelerate its transition toward public cloud services outside of the view of the public market. "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," Cloudera CEO Rob Bearden said in a press release.
Cloudera has faced intensifying competition from the likes of Amazon Web Services and Microsoft's Azure in recent years. Its stock price, in turn, has languished since its initial public offering (IPO) in April 2017.
Cloudera's gains on Tuesday finally drove its shares back above its $15 IPO price. "This transaction provides substantial and certain value to our shareholders while also accelerating Cloudera's long-term path to hybrid cloud leadership," Bearden said.