Business software company Alteryx explores sale -sources

Alteryx

06/09/2023 23:37

(Updates with Insight Partners' interest in paragraphs 4-5,
share reaction in paragraph 8)
    By Milana Vinn
       Sept 6 (Reuters) - Alteryx Inc  AYX.N , a data analytics
software company with a market value of $2.5 billion, has been
working with an investment bank to explore a potential sale
after attracting takeover interest, according to people familiar
with the matter.
    Fierce competition from big rivals such as Microsoft Corp
 MSFT.O  and Oracle Corp  ORCL.N , as well as setbacks in
winning new business, have suppressed Alteryx's valuation and
made it an acquisition target. Its shares had lost almost half
their value in the last 12 months prior to news of its exploring
a sale.
    The Irvine, California-based company is being advised by
investment bank Qatalyst Partners on its discussions with
potential acquirers, which include private equity firms, the
sources said.
    Insight Partners, an early investor in Alteryx which has
retained a 1.5% stake in the company and representation on its
board of directors, has recused itself from the sale
deliberations because of its interest as a potential acquirer,
one of the sources said. 
    Alteryx co-founder and Executive Chairman Dean Stoecker, who
owns 11.5% of the company but controls it through dual-class
shares that give him 51% of all outstanding shares' voting
power, is considering the possibility of rolling his stake in
any deal, that source added.  
    Expressions of interest that Alteryx has received thus far
have not met its valuation expectations, and the company may
decide against any transaction, the sources said, requesting
anonymity because the matter is confidential. 
    Alteryx and Qatalyst did not immediately respond to requests
for comment. Insight Partners declined to comment. 
    Alteryx shares ended trading on Wednesday up 14% on the news
at $34.58.
    Alteryx, which debuted in the stock market in 2017, counts
more than 8,300 companies as its customers, including Coca-Cola
Co  KO.N , Vodafone Plc  VOD.L , Walmart Inc  WMT.N , and Ford
Motor Company  F.N . Its platform allows businesses to quickly
analyze and crunch data. 
    In recent years, Alteryx has transitioned to a
subscription-focused business model as part of a strategy to tap
into growing demand for data analytics services. 
    In its most recent quarter, Alteryx posted a net loss of
$120 million due to higher sales and marketing expenses. The
company has been revamping its sales operations, including with
training and coaching, after losing its North America sales
chief and recording slower growth in signing up new customers.

 (Reporting by Milana Vinn in New York; Editing by Nick
Zieminski and Stephen Coates)
 ((milana.vinn@thomsonreuters.com))