Cloudera and Hortonworks have entered into a definitive agreement under which the companies will combine in an all-stock merger of equals. The transaction will create one of the world’s leading data platform providers – spanning multi-cloud, on-premises and the edge.
Under the terms of the transaction agreement, Cloudera stockholders will own approximately 60% of the equity of the combined company and Hortonworks stockholders will own approximately 40%. The hybrid cloud data management companies have a combined equity value of approximately $5.2 billion. The companies expect to complete the transaction during the first quarter of calendar year 2019.
“Our businesses are highly complementary and strategic,” said Tom Reilly, chief executive officer (CEO) of Cloudera. “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 vision will enable our companies to advance our shared commitment to customer success in their pursuit of digital transformation.”
Following completion of the transaction, Cloudera’s Chief Executive Officer, Tom Reilly, will serve as Chief Executive Officer; Hortonworks’ Chief Operating Officer, Scott Davidson, will serve as Chief Operating Officer; Hortonworks’ Chief Product Officer, Arun C. Murthy, will serve as Chief Product Officer; and Cloudera’s Chief Financial Officer, Jim Frankola, will serve as Chief Financial Officer, of the combined company. Hortonworks’ Chief Executive Officer, Rob Bearden, will join the board of directors. Current Cloudera board member, Marty Cole, will become Chairman of the board of directors.
Capitalize On The Value of Data
“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,” said Rob Bearden, chief executive officer (CEO) of Hortonworks. “Together, we are well positioned to continue growing and competing in the streaming and IoT, data management, data warehousing, machine learning/AI and hybrid cloud markets. Importantly, we will be able to offer a broader set of offerings that will enable our customers to capitalize on the value of their data.”
Some highlights of the combined companies after the merger:
- Approximately $720 million in revenue
- More than 2,500 customers
- More than 800 customers over $100,000 ARR
- More than 120 customers over $1 million ARR
- More than $125 million in annual cost synergies
- More than $150 million cash flow in CY20
- Over $500 million cash, no debt