Talend entered into an settlement to be acquired by Thoma Bravo for $2.4 billion.
Talend, based in 2004 and based mostly in Redwood Metropolis, Calif., is a knowledge integration specialist whose platform allows prospects to mix info from disparate sources into unified knowledge units that may subsequently be used for analytical evaluation. Thoma Bravo, in the meantime, is a personal fairness agency based in 2008 and based mostly in Chicago with $70 billion of belongings beneath administration.
Below the phrases of the settlement between Talend and Thoma Bravo revealed March 10, Talend will probably be acquired for $66 per share, which represents a premium of about 29% to Talend’s closing value of $51.30 on March 9.
Talend’s board of administrators unanimously permitted the acquisition, in keeping with a launch.
The deal, which is predicted to shut through the third quarter, demonstrates the worth organizations at the moment are inserting on knowledge integration. With knowledge collected not solely from extra sources than ever earlier than but in addition in better quantity, organizations want to have the ability to combine all that knowledge into cohesive knowledge units they will then use to drive decision-making.
Beforehand amongst knowledge integration distributors, Informatica was acquired in 2015 by Permira and the Canada Pension Plan Funding Board for $5.3 billion, MuleSoft was acquired by Salesforce in 2018 for $6.5 billion and on March 2 Centerbridge Companions bought Exactly, which it had acquired in 2017, to personal fairness companies Clearlake Capital Group and TA Associates for $3.5 billion.
“Knowledge integration is a scorching market proper now,” mentioned Noel Yuhanna, principal analyst at Forrester Analysis. “Most organizations we communicate to battle with integrating knowledge on premises, and the cloud makes it worse. Organizations are demanding extra real-time, self-service and built-in knowledge capabilities to help trendy enterprise purposes and insights.”
Doug Henschen, principal analyst at Constellation Analysis, added that it is not solely knowledge integration that is scorching proper now — it is expertise as a complete. And provided that Talend is a well-established vendor with a powerful buyer base, historical past of development, and strong software program upkeep and subscription revenues, it was a sexy acquisition candidate.
“Personal fairness companies are after strong returns,” he mentioned.
As for continued development, the analysts mentioned that if historical past is a information, getting acquired by Thoma Bravo will not be a hindrance for Talend.
Christal Bemont, who took over as Talend’s CEO in January 2020 after former CEO Mike Tuchen stepped down following six years on the vendor’s helm, mentioned in a press release that the deal will present Talend the capital, assets and experience to achieve its objectives and ship on its mission of enabling organizations to develop into extra data-driven.
Noel YuhannaPrincipal analyst, Forrester Analysis
Among the many objectives Bemont, who got here to Talend after 15 years at SAP Concur the place she oversaw the expense and journey administration platform’s conversion from on premises to the cloud, set for Talend had been to enhance its efficiency within the cloud and set the seller on a path to develop its revenues from $250 million yearly to $1 billion.
On Feb. 10, Talend reported complete income in 2020 of $287.5 million, up from $247.8 million in 2019.
Equally, Steve Singh, Talend’s chairman, mentioned in a press release that the acquisition will probably be a long-term profit for the seller’s prospects, workers and different stakeholders.
In the meantime, Thoma Bravo’s acquisition of Talend is not the personal fairness agency’s first foray into the realm of analytics. In 2016, Thoma Bravo acquired analytics vendor Qlik for $3.0 billion.
Since then, simply as Talend is within the technique of bettering its cloud operations and increasing its presence within the cloud, Qlik has shifted its focus from on premises to the cloud. As well as, it has expanded its capabilities via a collection of acquisitions, going from being centered merely on enterprise intelligence to offering a full-featured analytics platform that includes augmented analytics capabilities.
Qlik’s acquisitions of Attunity and Podium Knowledge added knowledge administration capabilities, its buy of CruchBot improved its pure language processing capabilities, and most lately, its acquisition of Blendr.io added knowledge integration capabilities.
“After an preliminary interval of govt turnover and a modest stage of layoffs … issues settled down at Qlik and I’ve subsequently seen important funding within the enterprise, together with natural improvement and the acquisitions,” Henschen mentioned. “That ought to be an encouraging instance for Talend prospects.”
It is too early to know whether or not the acquisition will set off layoffs at Talend.
Equally, Yuhanna mentioned Qlik has finished nicely since being acquired by Thoma Bravo.
“We do not imagine Thoma Bravo has gotten in the best way of Qlik’s technique,” he mentioned. “Qlik has finished exceptionally nicely beneath Thoma Bravo. Not solely has Qlik been increasing its core knowledge capabilities, driving innovation, and increasing into new markets, it acquired some knowledge and analytics distributors, which has helped it develop its platform to develop into one of many key gamers within the knowledge administration house.”
Talend’s acquisition by Thoma Bravo stays topic to regulatory approval and different due diligence measures earlier than closing. As well as, the acquisition settlement features a 30-day “go-shop” interval ending April 10 beneath which Talend is free to discover different potential consumers.
If its take care of Thoma Bravo is accomplished, as soon as Talend is acquired it is going to revert to turning into a personal firm after going public in 2016.