Cloudera merges with Hortonworks to create next gen data platform company across multi-cloud, on-premise and on the edge



Cloudera and Hortonworks jointly announced this week that they have entered into a definitive agreement under which the companies will combine in an all-stock merger of equals. The transaction, which has been unanimously approved by the Boards of Directors of both companies, will create next generation data platform provider, spanning multi-cloud, on-premises and the edge.

The combination establishes industry standard for hybrid cloud data management, accelerating customer adoption, community development and partner engagement.

Under the terms of the transaction agreement, Cloudera stockholders will own approximately 60 percent of the equity of the combined company and Hortonworks stockholders will own approximately 40 percent. 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 Oct. 1, 2018. The companies have a combined fully-diluted equity value of $5.2 billion based on closing prices on Oct. 2, 2018.

The merger establishes the next generation data platform company with increased scale and resources to deliver the industry’s first enterprise data cloud, providing the ease of use and elasticity of the public cloud from the data center, to the edge and everywhere in between

Creates a superior unified platform and clear industry standard from the Edge to AI, substantially benefiting customers, partners and the community.

It also accelerates market development and fuels innovation in IoT, streaming, data warehouse, hybrid cloud, machine learning/AI; expands market opportunity with complementary offerings, including Hortonworks DataFlow and Cloudera Data Science Workbench; and enhances partnerships with public cloud vendors and systems integrators.

Following completion of the transaction, Cloudera’s Chief Executive Officer, Tom Reilly, will serve as Chief Executive Officer; Hortonworks’ Chief Operating Officer, Scott Davidson, will serve as Chief Operating Officer; Hortonworks’ Chief Product Officer, Arun C. Murthy, will serve as Chief Product Officer; and Cloudera’s Chief Financial Officer, Jim Frankola, will serve as Chief Financial Officer, of the combined company. Hortonworks’ Chief Executive Officer, Rob Bearden, will join the board of directors. Current Cloudera board member, Marty Cole, will become Chairman of the board of directors.

The board of directors of the newly-formed company will initially comprise nine directors. Four directors, including Bearden, will come from Hortonworks’ existing board of directors. Five directors, including Reilly, will come from Cloudera’s existing board of directors. A tenth director will be selected by the combined board.

A majority of the board of directors will be independent under New York Stock Exchange standards.

 

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