Two of the cloud industry's biggest rivals have announced that they will be joining forces.
Cloudera and Hortonworks will combine in an all-stock merger of equals, the pair announced via a press release.
The transaction has been approved by both companies’ Board of Directors, unanimously.
The press release says Cloudera stockholders will own roughly 60 per cent of the new company’s equity, while Hortonworks stockholders will keep the remaining 40 per cent.
Hortonworks stockholders will thus get 1.305 common shares of Cloudera, for each share of Hortonworks stock they own, bringing the value of the new company up to $5.2 billion.
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.”
The media are reporting that the news resulted in the price of shares, of both companies, skyrocketing. Cloudera stocks jumped 25 per cent on Wednesday, while Hortonworks saw its stocks jump 29 per cent.
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.”
Image Credit: Pitney Bowes Software