While described as a “merger of equals,” Cloudera shareholders will control 60 percent of the combined entity. Hortonworks shareholders will receive 1.305 common shares of Cloudera for each share of Hortonworks stock owned.
Cloudera’s stock surged more than 24 percent in after-hours trading to $21.25 per share. Hortonworks’ stock rose 25 percent to $27.35 per share.
The two companies combined have more than 2,500 customers and have generated approximately $720 million in revenues through the first half of their current fiscal years.
Cloudera CEO Tom Reilly will be CEO of the combined company. Cloudera CFO Jim Frankola will keep his same position. Hortonworks COO Scott Davidson and Chief Product Officer Arun Murthy will maintain their roles.
Hortonworks CEO Rob Bearden will join the new company’s board of directors. That board will initially include four members from Hortonworks current board and five members from Cloudera’s current board. A tenth member will be elected by the combined board.