Cloudera and Hortonworks to Merge

Cloudera, Inc. and Hortonworks, Inc. are merging to create the world’s leading next generation data platform provider, spanning multi-cloud, on-premises and the edge.

The transaction has been unanimously approved by the Boards of Directors of both companies and aims to establish the industry standard for hybrid cloud data management, accelerating customer adoption, community development, and partner engagement.

 “Our businesses are highly complementary and strategic,” said Tom Reilly, chief executive officer at 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.”

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%. Hortonworks stockholders will receive 1.305 common shares of Cloudera for each share of Hortonworks stock owned, which is based on the 10-day average exchange ratio of the two companies’ prices through October 1, 2018.

The companies have a combined fully-diluted equity value of $5.2 billion based on closing prices on October 2, 2018.

The merger offers benefits such as:

  • A superior unified platform and clear industry standard from the Edge to AI, substantially benefiting customers, partners and the community
  • Acceleration of market development and fuels innovation in IoT, streaming, data warehouse, hybrid cloud, machine learning/AI
  • Expanded market opportunity with complementary offerings, including Hortonworks DataFlow and Cloudera Data Science Workbench
  • Enhances partnerships with public cloud vendors and systems integrators
  • Expected to generate significant financial benefits and improved margin profile:
  • Approximately $720 million in revenue1
  • 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

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