Cloudera and Hortonworks have jointly announced that they have entered into an all-stock merger deal under which Cloudera will hold 60% whereas Hortonworks will hold 40% of the combined entity. With this deal, both companies aim to provide a data platform for customers that will span on-premise, multi-cloud and edge capabilities by leveraging big data software.
According to Cloudera, big data is a game changer for many enterprises that depend on cloud technology to store information and build applications. They also believe that with data warehousing and machine learning, enterprises can deliver enterprise-first data cloud from the edge to AI (artificial intelligence).
By merging with Hortonworks, Cloudera claim that they can offer a wide range of solutions in the data warehousing, hybrid-cloud, IoT (Internet of Things), AI and machine learning markets. They also say that the combined entity will compete in the Hadoop big data software market and create value for their respective stockholders and allow partners, customers etc. in the ecosystem to benefit from their large-scale offerings.
Speaking about the merger deal, Tom Reilly, CEO at Cloudera, commented:
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.
Hortonworks claim that their shareholders 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 October 1, 2018. Rob Bearden, CEO of Hortonworks. commented:
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.
In closing, the companies said that the deal is subject to U.S. antitrust clearance, and they expect it to close in the first quarter of 2019. It will be interesting to witness the changes in the cloud and data management industry after this merger and the one between Blueface and Star2Star, early this year.