Alteryx, the California-based software company specializing in data science and analytics products, has announced its acquisition by private equity firms Clearlake Capital Group and Insight Partners. The deal, valued at $4.4 billion, marks a significant move in the realm of data analytics and software acquisitions.
Beating out competitors like Symphony Technology Group, Clearlake and Insight secured the acquisition, offering a 29.1% premium over Alteryx’s closing share price on Friday. The acquisition, which involves debt, values Alteryx’s equity at approximately $3.46 billion and is anticipated to finalize in the first half of 2024, pending customary closing conditions and approvals.
Alteryx CEO Mark Anderson expressed optimism about the acquisition, stating, “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’s journey began in 1997 as SRC, focusing on data engines for demographic-based mapping and reporting. In 2006, the software app Alteryx was released, evolving into the company’s core product by 2011. Alteryx went public on the NYSE in 2017 after raising substantial funding from VC firms.
Transitioning to a subscription-oriented model and enhancing AI-powered features, Alteryx strategically positioned itself to tap into the burgeoning demand for data analytics services. Predictions from Research and Markets estimate the big data analytics market to reach $105.08 billion by 2027, up from $37.34 billion in 2018.
With over 8,300 companies, including Coca-Cola, Vodafone, Walmart, and Ford, among its clientele, Alteryx reported significant growth in its sales and annualized recurring revenue. The company’s last fiscal quarter saw a sales increase of 8%, reaching $232 million, while its annualized recurring revenue surged by approximately 21% to $914 million.
Dean Stoecker, co-founder of the precursor to Alteryx, emphasized the significance of this agreement: “Our agreement with Clearlake and Insight validates the strength of our business and the value of Alteryx’s capabilities and innovation.”
The acquisition signifies a turning point for Alteryx, poised to further innovate and expand its market presence in the data analytics industry. As the company navigates this pivotal transition, the partnership with Clearlake and Insight paves the way for a new phase in Alteryx’s evolution.
