Private equity firms Clearlake Capital Group and Insight Partners will use debt as part of the purchase, which will pay stockholders $48.25 per share.
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Alteryx, a leading data analytics cloud platform provider, has agreed to be acquired by two private equity firms for $4.4 billion, a deal expected to close during the first half of 2024.
Clearlake Capital Group and Insight Partners will use debt as part of the purchase, through which Irvine, Calif.-based Alteryx will become a privately held company and be removed from the New York Stock Exchange, according to an Alteryx statement Monday.
Alteryx, founded in 1997, will continue to invest in artificial intelligence (AI), machine learning (ML) technology and cloud services, presenting itself as an innovator in data preparation and analytics, according to the statement. Alteryx has more than 8,000 customers worldwide.
Alteryx To Sell For $4.4B
CRN has reached out to Alteryx and its buyers for additional comment. Reports have circulated since September that the company was considering a sale to private equity firms. The vendor went public in 2017 and during the past year its shares lost almost half their value.
The Alteryx Analytics Cloud Platform is the company’s flagship product, combining data preparation, integration, analytics and machine learning functionality. Earlier this year the company launched Alteryx AiDIN, combining AI, generative AI, machine learning and large language model technology in one system.
The vendor has about 400 channel partners worldwide, according to CRN’s 2023 Channel Chiefs.
The acquisition deal will pay Alteryx stockholders $48.25 per share in cash, a 59 percent premium to the company’s “unaffected closing stock price” on Sept. 5 prior to media reports of a possible sale.
“We’re pleased to announce our agreement with Clearlake and Insight. In addition to delivering significant and certain cash value to our stockholders, this transaction will provide increased working capital and industry expertise, and the flexibility as a private company,” Alteryx CEO Mark Anderson said in a statement. “Together, we will make investments that matter most to our customers and accelerate our mission of harnessing the power of analytics to enable customers all over the world to transform data into a breakthrough.”
The company’s stock traded at about $47 a share after the market close Monday, down about 2 percent from Friday’s $48.04 per share market close.
During Alteryx’s most recent quarterly earnings report – released Nov. 6 for the quarter ended Sept. 30 – the vendor reported $232 million in revenue during the quarter, up 8 percent year over year. But the company reported a $50 million (GAAP) loss for the quarter, an improvement of about 33 percent over its loss for the same period in 2022.
Alteryx’s leadership highlighted hiring the new channel chief, Scott Van Valkenburgh, during its November earnings call, according to a transcript.
Company President and Chief Revenue Officer Paula Hansen said on the call that more than 50 percent of new annual contract value (ACV) each quarter comes from partners.
At the time CEO Anderson highlighted a new partnership with Google solution provider SADA – No. 108 on CRN’s 2023 Solution Provider 500 and, coincidentally, is itself being acquiredby solution provider giant Insight Enterprises.
Chief Financial Officer Kevin Rubin said the vendor in 2024 would “look to expand our partner source contributions to drive additional scale and efficiency,” according to the earnings call transcript.
Clearlake portfolio companies include BeyondTrust, Confluence, Ivanti and RSA, according to the firm’s website.
Insight Partners’ portfolio includes Wiz, Kaseya, JFrog, LaunchDarkly, Monday.com, SentinelOne, SysDig, Veeam, Devo, Abnormal, Aqua and Docker, according to its website.