ALTERYX said on Monday (Dec 18) it has agreed to be acquired by private-equity firms Clearlake Capital Group and Insight Partners, in a deal valued at US$4.4 billion including debt.

Fierce competition from bigger rivals such as Microsoft and Oracle as well as setbacks in winning new business suppressed Alteryx’s valuation and made it an acquisition target.

Alteryx stockholders will receive US$48.25 per share in cash for each share of Alteryx Class A or Class B common stock held, valuing its equity at US$3.46 billion, according to Reuters calculation.

The price represents a premium of 29.1 per cent from Alteryx’s last closing share price on Friday.

The company’s shares have risen nearly 68 per cent from the closing price on Sep 5, the last trading day before Reuters reported that Alteryx was exploring a sale.

Dean Stoecker, Alteryx’s co-founder and executive chair, who holds about 49 per cent of the company’s voting power through dual-class shares, has entered into a voting agreement to support the transaction.

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Shares of the data analytics software company dropped 2 per cent in the early session. Up to the stock’s last close, it has declined 5 per cent, compared with a 55 per cent gain in the S&P 500 Information Technology Sector Index.

Alteryx, which made its debut in the public markets in 2017, counts more than 8,300 companies as its customers, which include Coca-Cola, Vodafone, Walmart, and Ford Motor. Its platform allows businesses to quickly analyse 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.

Qatalyst Partners advised Alteryx, while Houlihan Lokey, Goldman Sachs, JP Morgan Securities, and Morgan Stanley were financial advisers to Clearlake and Insight. REUTERS