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Cloudera Stock (CLDR) to be acquired by KKR and CD&R
Cloudera is a company that offers enterprise data cloud, or in other words cloud integrated applications similar to Oracle. The company was founded in 2008 then went public in 2017 with a price of $15 apiece.
Despite the strong start, news was released first day of June this year that the company will be acquired by KKR and CD&R (Clayton, Dubilier and Rice) in a $5.3 billion deal with the stock owners getting $16 per share which will be completed in the second half of this year.
The CLDR stock has been very volatile, and the but it has its ups and downs. The main reason for the company agreeing to be acquired was the halt in growth rate. The company performed really well as shown on the 2020's Q4 earnings report that they posted, which showed that they exceeded expectations on many levels.
However, the company fell short in terms of the guidance they provided for 2021. Even the revenue growth is low, showing only 9% increase in revenue which falls behind Wall Street estimates by a large margin, greatly disappointing the investors. To add to this, the company announced that the revenue growth would be slowed further this year.
There are also the losses that was very visible on the reports, showing very little improvement. The company was able to minimize it by cost cutting, but this further hindered the growth of the company itself. And from here, the stocks continued to dwindle between $11 to below $13.
After the announcement of the company being acquired, the stocks went up to almost $16 per share, primarily due to the set amount provided by the company since the second half of the year is almost there. Technically speaking, the road for Cloudera is ending once the acquisition is completed and those who bought the stocks on IPO price will be earning at least a dollar per share or about 6.7% returns. Those that bought the stocks on its dip at around $5 have done well.
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