If you ever wondered if Cloudera was a good stock to buy, now you don’t have to think about it, because Cloudera is going private.
The company went public in 2017, but now the company is going private in an all-cash deal with KKR and Clayton, Dubilier & Rice (CD&R).
Let’s talk a little bit about Cloudera. Looking at the final agreement, the current shareholders will get $16 a share (all cash). That’s about a 24% premium based on the company’s stock price as of May 28. And about 30% if you look at the average price over the past 30 days.
The board of directors has already approved the deal, now it has to wait for the approval of the shareholders, as well as the approval of the anti-trust laws.
This is definitely good news for the company’s shareholders, who will be able to sell their shares at a tangible premium. And I can even say that this is a logical ending to this story.
Cloudera has been struggling with its stock price as the company has failed to meet its 2019 earnings targets. The company’s stock rose amid the pandemic, but still remained below its 2017 IPO price.
Abstracting away from lofty statements, everyone has benefited so far. New investors got a working cloud data company, which recently made acquisitions of SaaS companies Datacoral and Cazena, and shareholders will get money at a premium, which is likely to make them very happy.
So for now, the deal looks like a win-win situation, if all goes smoothly, it will close in the second half of 2021.
