Blockchain Capital launches two new funds for a total of $580M

Alteryx, an Irvine, California-based software company developing data science and analytics products, today announced that it’s agreed to be acquired by private equity firms Clearlake Capital Group and Insight Partners in a deal worth $4.4 billion.

Clearlake and Insight reportedly beat out Symphony Technology Group, another private equity firm, which Reuters reported several days ago had been vying for Alteryx.

The Clearlake-Insight deal, which includes debt, values Alteryx’s equity at around $3.46 billion, reports Reuters — a 29.1% premium over the company’s closing share price on Friday. It’s expected to close in the first half of 2024 subject to customary closing conditions and approvals.

The immediate impact on Alteryx’s ~2,900 employees isn’t clear.

“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. “Over the past several years, we’ve executed a comprehensive transformation strategy to enhance our go-to-market capabilities and establish a strong cloud and AI innovation roadmap. We’re excited to partner with Clearlake and Insight for the next stage of Alteryx’s journey.”

SRC, the predecessor to Alteryx, was co-founded in 1997 by Dean Stoecker, Olivia Duane Adams and Ned Harding and initially focused on creating data engines for demographic-based mapping and reporting. In 2006, SRC released the software app Alteryx as a platform for building analytical processes and services. By 2011, SRC had changed its name to Alteryx, which by then had become its core product. 

After raising tens of millions of dollars from VC firms including Toba Capital, Insight, Sapphire Ventures, ICONIQ Capital and Meritech Capital Partners, Alteryx went public on the NYSE in 2017.

More recently, Alteryx transitioned to a subscription-focused business model — and greatly expanded its AI-powered feature offerings — as part of a strategy to tap into growing demand for data analytics services. According to the analyst firm Research and Markets, the big data analytics market could be worth $105.08 billion by 2027, up from $37.34 billion in 2018.

Alteryx now counts more than 8,300 companies as its customers, including Coca-Cola, Vodafone, Walmart and Ford. In its coverage of the deal today, SiliconAngle notes that Alteryx generated $232 million in sales last fiscal quarter, up 8% from the same time a year ago, and that its annualized recurring revenue grew nearly three times as fast in the same time frame, jumping roughly 21% to $914 million.

“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. “Our agreement with Clearlake and Insight validates the strength of our business and the value of Alteryx’s capabilities and innovation.”

Source link