Cloudera (NYSE:CLDR) and Hortonworks (Nasdaq:HDP) agreed to a merger of equals with the goal of becoming "the world’s leading next-generation data platform provider, spanning multi-cloud, on-premises and the Edge."
The combination establishes the industry standard for hybrid cloud data management, accelerating customer adoption, community development, and partner engagement.
Cloudera, which is based in Palo Alto, California, began operations in 2008 as a hybrid open-source Apache Hadoop distribution. The company completed its IPO in April 2017. Cloudera has partnerships with AWS and Microsoft Azure.
Hortonworks, which is based in Santa Clara, California, was formed in June 2011 to supply open source software for enterprises. Hortonworks has partnerships with Google Cloud, Microsoft Azure, and IBM Cloud.
Tom Reilly, chief executive officer at Cloudera, stated, “Our businesses are highly complementary and strategic. 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.”
“This compelling merger will create value for our respective stockholders and allow customers, partners, employees and the open source community to benefit from the enhanced offerings, larger scale and improved cost competitiveness inherent in this combination,” said Rob Bearden, chief executive officer of Hortonworks. “Together, we are well positioned to continue growing and competing in the streaming and IoT, data management, data warehousing, machine learning/AI and hybrid cloud markets. Importantly, we will be able to offer a broader set of offerings that will enable our customers to capitalize on the value of their data.”
The all-stock transaction, which has been unanimously approved by the Boards of Directors of both companies. Cloudera stockholders will own approximately 60% of the equity of the combined company and Hortonworks stockholders will own approximately 40%.
The combined company will have approximately $720 million in annual revenue, more than 2,500 customers, more than 800 customers over $100,000 ARR, and more than 120 customers over $1 million ARR.
The two companies have over $500 million in cash and no debt.
