Clearlake and Insight Secure $4.4 Billion Deal to Privatize Alteryx
Private equity firms Clearlake Capital Group and Insight Partners have successfully clinched a deal to acquire Alteryx, a prominent Irvine, California-based software company. The acquisition, valued at $4.4 billion, marks a strategic move in the dynamic landscape of data science and analytics.
Clearlake Capital Group, a private equity powerhouse, has joined forces with Insight Partners to acquire Alteryx. This collaboration underscores Clearlake’s commitment to driving transformation in the software industry. Insight Partners, another key player in the private equity sector, has played a pivotal role in sealing the deal. Their strategic insight aligns with the future growth trajectory of Alteryx.
Founded in 1997 as SRC, Alteryx has undergone a transformative journey, evolving from data engines for demographic-based mapping to becoming a leading player in analytical processes and services. Alteryx made waves by going public on the NYSE in 2017. Recent strategic shifts towards a subscription-focused business model and the expansion of AI-powered features have positioned Alteryx as a trailblazer in the data analytics domain.
Deal Dynamics
The deal, including debt, values Alteryx’s equity at approximately $3.46 billion. It represents a 29.1% premium over the company’s closing share price. This robust valuation underlines the confidence Clearlake and Insight have in Alteryx’s growth potential. Mark Anderson, CEO of Alteryx, expressed enthusiasm about the acquisition, emphasizing the transaction’s immediate impact on stockholders.
Alteryx’s transition to a subscription-focused model has proven successful, with over 8,300 customers, including Coca-Cola, Vodafone, Walmart, and Ford. Industry analysts project substantial growth in the big data analytics market, estimating it could reach $105.08 billion by 2027.
The Clearlake-Insight partnership signifies a new chapter in Alteryx’s journey, promising increased working capital, industry expertise, and flexibility. As the deal awaits closure in the first half of 2024, the software maker is poised for continued innovation and growth.
