Alteryx taken private in $4.4bn deal

March 2024 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

March 2024 Issue

In deal that takes the company private, cloud platform firm Alteryx, Inc. is to be acquired by global private equity giants Clearlake Capital Group and Insight Partners for $4.4bn, including debt.

Under the terms of the definitive agreement, Alteryx stockholders will receive $48.25 per share in cash for each share of Alteryx class A or class B common stock that they own. Upon completion of the transaction, Alteryx’s common stock will no longer be listed on any public stock exchange.

The per share purchase price represents a 59 percent premium to Alteryx’s unaffected closing stock price on 5 September 2023, the last full trading day prior to media reports regarding a possible sale transaction.

“We are pleased to announce our agreement with Clearlake and Insight,” said Mark Anderson, chief executive of Alteryx. “In addition to delivering significant and certain cash value to our stockholders, this transaction will provide increased working capital and industry expertise, and the flexibility as a private company. Together, we will make investments that matter most to our customers and accelerate our mission of harnessing the power of analytics to enable customers all over the world to transform data into a breakthrough.”

The transaction has been approved and recommended by Alteryx’s board.

“We see a tremendous growth opportunity for Alteryx’s new artificial intelligence (AI) products and feature-rich cloud solutions and to further its reputation as an innovator in the data preparation and data analytics markets,” said Behdad Eghbali, co-founder and managing partner of Clearlake. “We believe Clearlake’s sector expertise, coupled with Alteryx’s talented team and impactful mission, is a winning formula for enterprises looking to use data to improve and scale their businesses.”

Headquartered in Irvine, California and with 22 additional global offices, Alteryx delivers end to end automation of data engineering, analytics, reporting, machine learning (ML) and data science processes, enabling enterprises everywhere to democratise data analytics across their organisations for a broad range of use cases.

“Alteryx’s success stands as a testament to their visionary founder’s exceptional ability in shaping the future of software and technology – a journey Insight takes great pride in being a part of,” added Deven Parekh, a managing director at Insight Partners. “We are looking forward to opening this new chapter with Alteryx as they advance into the next phase of their growth journey, focusing on cloud and AI and ML to create winning products.”

Serving as exclusive financial adviser to Alteryx is Qatalyst Partners, with Wilson Sonsini Goodrich & Rosati and Fenwick & West serving as legal advisers. Houlihan Lokey, Goldman Sachs & Co, Morgan Securities, and Morgan Stanley & Co are serving as financial advisers to Clearlake and Insight. Sidley Austin is serving as legal adviser to Clearlake, with Willkie Farr & Gallagher serving as legal adviser to Insight.

The transaction is expected to close in the first half of 2024, subject to customary closing conditions and approvals, including approval by Alteryx stockholders and the receipt of required regulatory approvals.

Mr Anderson concluded: “Both Clearlake and Insight have great respect for our mission, people and technology, and they look forward to helping our company – and in turn our customers and partners – be even more successful.”

Fraser Tennant