Cloudera, Inc. (NYSE: CLDR) shares rose Thursday after the company disclosed that the company will merge with Hortonworks Inc (NASDAQ: HDP) Hortonworks shareholders will receive 1.305 common shares of Cloudera for each Hortonworks share.
Under the terms of the transaction agreement, Cloudera stockholders will own approximately 60% of the equity of the combined company and Hortonworks stockholders will own approximately 40%.
Hortonworks stockholders 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. The companies have a combined fully-diluted equity value of $5.2 billion based on closing prices on October 2
The transaction, which has been unanimously approved by the Boards of Directors of both companies, will create the world’s leading next generation data platform provider, spanning multi-cloud, on-premises and the Edge. The combination establishes the industry standard for hybrid cloud data management, accelerating customer adoption, community development and partner engagement.
According to Cloudera CEO Tom Reilly, "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."
Cloudera shares began Thursday trading jumping $2.63, or 15.4%, to $19.79, while those for Hortonworks skyrocketed $3.44, or 15.7%, to $25.32
