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. Insight and Clearlake declined to comment. Alteryx 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 roll 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.
