Cloudera stock soars twenty two per cent as PE buyout reports swirl

Enterprise data cloud company Cloudera is considering selling up after receiving interest from a private equity firm, according to reports in Bloomberg.

The market responded with shares spiking by as much as 22 per cent on Tuesday.

The US cloud vendor has had a rocky few quarters following its merger with open-source software heavyweight Hortonworks last year. The deal valued the combined companies at $5.2bn.

Cloudera's market cap is now $3.52bn.

However, in its Q1 financials published last week, Cloudera showed signs of recovery, logging $210m in revenues, up 12 per cent year on year. Gross profit also rose by 24 per cent to $156.2m.

CEO Rob Bearden cited remote working as giving a boost to the firm's top and bottom line.

"We believe that remote working environments have placed heightened importance on data, data analysis and data security, which has increased the value of data architecture design and the criticality of hybrid cloud solutions," he said.

Among the list of Cloudera's investors who would have to give the greenlight to any potential PE buyout are controversial activist investor Carl Icahn, which is its largest shareholder.

Icahn is currently embroiled in a lawsuit over his involvement in the hostile Xerox HP takeover attempts.

 

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• Topics
• Vendor
• Cloudera
• US
• Big Data
• acquisition
• PE