Alteryx, a software company based in Irvine, California, has announced today that it will be acquired by private equity firms Clearlake Capital Group and Insight Partners in a deal valued at $4.4 billion.
“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.
The acquisition comes after Clearlake and Insight beat out Symphony Technology Group, another private equity firm, which had also expressed interest in the company.
The deal, which includes debt, values Alteryx’s equity at around $3.46 billion, a 29.1% premium over the company’s closing share price on Friday. It is expected to close in the first half of 2024, subject to customary closing conditions and approvals.
The impact on Alteryx’s approximately 2,900 employees is not yet clear.
Alteryx was initially founded as SRC in 1997 by Dean Stoecker, Olivia Duane Adams, and Ned Harding with a focus on creating data engines for demographic-based mapping and reporting. In 2006, the company released the software app Alteryx, which later became its core product.
“When we founded Alteryx in 1997, we did so with a vision for the future of data science and analytics. Today, Alteryx stands out as an industry leader with a differentiated platform that scales data democratization in a governed manner,” Stoecker said.
After going public on the NYSE in 2017, Alteryx continued to expand and evolve, raising tens of millions of dollars from VC firms and transitioning to a subscription-focused business model. The company offers a wide range of AI-powered features and services, catering to the growing demand for data analytics in the market.
Based on the predictions of the analyst firm Research and Markets, the big data analytics market could reach a value of $105.08 billion by 2027, up from $37.34 billion in 2018.
Presently, Alteryx has over 8,300 customers, including major companies such as Coca-Cola, Vodafone, Walmart, and Ford. Last fiscal quarter, the company reported $232 million in sales, marking an 8% increase from the previous year and a 21% jump in annualized recurring revenue, which now stands at $914 million.
“Our agreement with Clearlake and Insight validates the strength of our business and the value of Alteryx’s capabilities and innovation,” Stoecker added.
The deal with Clearlake and Insight further solidifies Alteryx’s position as a leader in the data science and analytics field. As both companies work towards their shared vision for the future, the acquisition is expected to bring new opportunities for growth and development within Alteryx.