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Cloudera Agrees to $5.3 Billion Takeover by KKR, Clayton Dubilier & Rice

Carl Ichan-backed Cloudera agrees to a $5.3 billion takeover by private equity groups Kohlberg Kravis Roberts & Co and Clayton Dubilier & Rice.

Cloudera  (CLDR)  shares surged higher Tuesday after a group of private-equity investors, led by KKR, agreed to a $5.3 billion takeover of the cloud computing and data analytics group.

Kohlberg Kravis Roberts & Co and Clayton Dubilier & Rice LLC said they will pay $16 a share in cash for Palo Alto, California-based Cloudera, a 24.4% premium to its Friday closing price, and expects the deal to close in the second half of 2021.

Cloudera had been the subject of a number of potential takeovers following pressure from activist investor Carl Icahn, who built an 18.4% stake in the group in 2019 and placed two affiliates -- Nicholas Graziano and Jesse Lynn -- appointed to Cloudera's expanded ten-person board in exchange for limiting is stake in the group to under 20%.

“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,” said CEO Rob Bearden. “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."

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Cloudera shares were marked 24.4% higher in pre-market trading Tuesday to indicate an opening bell price of $16.00 each, a move that would peg the stock's year-to-date gain at around $14%. 

Cloudera posted earnings of 15 cents per share for the three months ending in January, the group's fiscal fourth quarter, with revenues rising 7% from the previous year to $226.6 billion. The group was scheduled to publish its first quarter earnings on Wednesday.

For the current financial year, Cloudera had forecast revenues in the range of $907 million to $927 million with subscription sales topping out at $832 million.