Cloudera was once one of the hottest Hadoop startups, but over time the shine has come off that market, and today it went private as KKR and Clayton, Dubilier & Rice, a pair of private equity firms, announced they intended to purchase Cloudera for $5.3 billion. The company has a market cap of around $3.7 billion. This comes just three years after the 2018 merger of Cloudera and Hortonworks for $5.2 billion.
The deal will likely enable the financial resources for the company to facilitate a pivot into developing a more modern robust product for data processing without facing public activist investor pressure.
In terms of the buyout price, it may be a bargain for KKR as all data indicates that Intel marked down its $740 million 2014 investment as Cloudera bought Intel’s stake back for $314 million last year. Time will tell if the private equity syndicate will be able to exit the deal with a healthy return or if they’ve waded into a dysfunctional minefield. The deal provides Cloudera a shop provision to seek a better deal, which it likely won’t get – if the transaction proceeds it will likely conclude in the end of Q3 of this year.