Insight, Clearlake close in on $5 billion deal for software firm Alteryx-sources

Alteryx

14/12/2023 18:29

(Adds background on Alteryx, share reaction in paragraphs 6-10)
    By Milana Vinn and Anirban Sen
       Dec 14 (Reuters) - A private equity consortium led by
Insight Partners and Clearlake Capital Group is in advanced
talks to take data analytics software company Alteryx  AYX.N 
private for around $5 billion, including debt, people familiar
with the matter said on Thursday. 
    The deal would come as fierce competition from big rivals
such as Microsoft  MSFT.O  and Oracle  ORCL.N , as well as
setbacks in winning new business, have suppressed Alteryx's
valuation and made it an acquisition target.
    Insight and Clearlake are in discussions to pay more than
$50 per share in cash for Alteryx, the sources said, cautioning
that the negotiations have not been completed. Such a deal would
represent a premium of more than 65% to Alteryx's share price on
Sept. 5, the last trading day before Reuters reported that
Alteryx was exploring a sale.
    Symphony Technology Group (STG), another private equity
firm, has also been vying for Alteryx and could still try to
clinch a deal, one of the sources added.
    The sources requested anonymity because the matter is
confidential. Alteryx, Insight, Clearlake and STG did not
immediately respond to requests for comment.
    Alteryx shares rose 7% to $49.19 in afternoon trading in New
York on Thursday.
    It is unclear whether Alteryx co-founder and Executive Chair
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, will role some of his stake in the deal.
    Alteryx, which debuted in the stock market in 2017, counts
more than 8,300 companies as its customers, including Coca-Cola
 KO.N , Vodafone  VOD.L , Walmart  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.
    Insight, an early investor in Alteryx, which has retained a
1.5% stake in the company and representation on its board of
directors, recused itself from board deliberations about the
sale of the company, the sources said.

 (Reporting by Milana Vinn and Anirban Sen in New York
Editing by Greg Roumeliotis and Lisa Shumaker)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))