Alteryx, a prominent player in the data analytics sector, has announced its acquisition by private-equity firms Clearlake Capital Group and Insight Partners. According to Reuters, the deal, including debt, is valued at approximately $4.4 billion, marking a significant shift in the data analytics landscape.
Alteryx, facing stiff competition from industry giants like Microsoft (MSFT.O) and Oracle (ORCL.N), has found itself under pressure in recent times. Challenges in expanding its customer base and the competitive market dynamics have led to a suppressed valuation, making it an attractive target for acquisition.
Under the terms of the agreement, Alteryx stockholders will receive $48.25 per share in cash for each share of Class A or Class B common stock. This valuation pegs the company’s equity at around $3.46 billion, based on Reuters’ calculations. The offer price represents a 29.1% premium over Alteryx’s closing share price last Friday.
Stock performance and market reaction
Alteryx’s stock (AYX.N) has seen a significant surge of nearly 68% since September, following reports of the company exploring a sale. However, despite these gains, the stock is down 5% this year, underperforming against the 55% gain in the S&P 500 Information Technology Sector Index (.SPLRCT).
Dean Stoecker, the co-founder and executive chair of Alteryx, who controls approximately 49% of the company’s voting power through dual-class shares, has agreed to support the transaction.
Since its public market debut in 2017, Alteryx has established a strong customer base, boasting over 8,300 companies, including high-profile names like Coca-Cola (KO.N), Vodafone (VOD.L), Walmart (WMT.N), and Ford Motor (F.N). The company’s platform is renowned for enabling businesses to efficiently analyze and process data.
Qatalyst Partners served as the advisor to Alteryx in this transaction. Clearlake and Insight received financial advice from Houlihan Lokey, Goldman Sachs, J.P. Morgan Securities, and Morgan Stanley.
