Insight and Clearlake's $4.4B Take-Private of Alteryx, DocuSign For Sale, KKR Mulls $3.8B Iris Software Deal

Insight and Clearlake's $4.4B Take-Private of Alteryx, DocuSign For Sale, KKR Mulls $3.8B Iris Software Deal

Private equity news the week of December 18th, 2023.

Recent Insights

Our research team compiled a list of the 100 largest private equity buyouts of all-time. The list includes some information about each deal and exit outcome. (Read More)

More Insights

  • The 100 Largest Private Equity Buyouts of All-Time (Read More)
  • Private Equity Firms Are Increasing Exposure to These Industries (Read More)
  • AI in Private Equity Report (Read More)
  • The Profile of a Private Equity-backed CEO (Read More)
  • Meet KKR’s Portfolio Operations Group (Read More)

Deal News

Alteryx has agreed to a take-private deal with Clearlake Capital and Insight Partners valuing the technology company at $4.4 billion. The company sells enterprise-level analytics software. Alteryx’s stock price is down -5% YTD; for comparison, the S&P 500 Information Technology Sector Index is up 55%.  Equity analysts who cover the stock say Alteryx is facing increased competition in the enterprise analytics space from Salesforce (Tableau) and Microsoft (Azure). In addition, Alteryx has been growing revenue at the expense of earnings, a strategy which public markets have grown more wary of since the Fed started raising interest rates. For FY 2022, Alteryx reported $855 million of revenue, up 60% YoY, but $319 million of net losses. Given current market conditions, Alteryx will likely perform better as a private company. Deven Parekh and Ryan Hinkle spearheaded the deal for Insight Partners. (Source)

DocuSign’s directors are reportedly working with advisors to sell the company. It currently has a market cap of $12.5 billion as of Monday December 18th. The stock price is up 13% YTD, but down -80% since the 2021-highs. For the past several quarters, DocuSign has reported low double-digit revenue growth and earnings in the low-millions. Similar to Alteryx’s situation, equity analyst Anurag Rana says the company is facing increased competition from a larger competitor (Adobe) and that public markets have lost their taste for unprofitable software stocks. (Source)

KKR is in talks to acquire tech company Iris Software for $3.8 billion. The company produces software for accounting and HR functions, and currently serves over twenty-five Fortune 500 clients. Revenue was reportedly up 30% in 2022. Iris CEO Elona Mortimer-Zhika has previous experience as a PE-backed executive. (Source)

EQT is acquiring medical device maker Zeus Industrial Products for $3.4 billion. The family-owned company was founded in 1966 and specializes in manufacturing minimally-invasive components for medical procedures. The company is said to generate approximately $200 million in EBITDA. Ethan Waxman helped lead the deal for EQT. (Source)

Yellow Wood Partners has inked a deal to acquire 20 brands, including Q-tips, from Unilever. Financial terms of the deal were not disclosed but the collective group of businesses generated approximately $890 million in 2021 revenue. Unilever has been in the process of refocusing on its core 30 brands (out of 450) that make-up 70% of company revenue. Unilever’s non-core assets continue to be a buying opportunity for private equity firms that have a track record of turning around legacy brands. Tad Yanagi and Dana Schmaltz helped lead the deal for Yellow Wood. (Source)

CD&R has agreed to acquire food manufacturer Shearer’s Foods. Financial terms were not disclosed, but previous reports estimated the deal at approximately $3 billion, based on $250 million of EBITDA. J.L. Zrebiec and John Compton helped lead the deal for CD&R. Compton, who is also the former president of PepsiCo, is expected to lead the company’s value creation plan under CD&R. (Source)

Bain Capital has agreed to acquire a controlling stake in infrastructure firm Eleda at a valuation of $1.6 billion. The Sweden-based company specializes in infrastructure projects, such as the construction and maintenance of roads in the Nordic region. It generates approximately $1.4 billion in annual revenue. Ivano Sessa helped lead the deal for Bain. (Source)

Thoma Bravo acquired a majority stake in software provider BlueMatrix. The company develops content management systems that helps financial services firms publish research. Adam Solomon and Chandler Gay helped lead the deal for Thoma Bravo. (Source)

Thoma Bravo also acquired a controlling stake in software provider Hypergene. The company designs software applications for FP&A professionals to manage budgeting, forecasting, and strategic planning. Irina Hemmers and David Tse helped lead the deal for Thoma Bravo. (Source)

Industry News 

Private equity “dry powder” increased 8% YoY in November to $2.6 trillion. Apollo Global Management leads all firms, with $55 billion of uncommitted capital on the sidelines, followed by KKR ($43 billion), and CVC Capital Partners ($39 billion). (S&P Global)

The Financial Times recognizes Silver Lake and 3G Capital for two of the most-successful PE deals of all-time. Silver Lake’s take-private of Dell Technologies, which led to the spin-off and subsequent sale of VMware, has earned the dealmaker and its co-investors, including Michael Dell, up to $70 billion. Meanwhile, 3G Capital’s turnaround of Burger King has returned an estimated $19 billion. Interestingly, both deals took over 10 years to play out. (Financial Times)

The University of Michigan’s $18 billion endowment is trimming its exposure to private markets. (Fortune)

People News

Mathias Burghardt has been promoted to CEO of Ardian France. Burghardt has been with Ardian since 2007 and is head of infrastructure deals.

Kamil Salame has been named CEO of UK-based private equity firm Cranemere Group. Salem is a former partner at CVC Capital Partners. 

Caroline Folleas has been hired as a partner at Cathay Capital. Previously, she was with Merieux Equity Partners. 

CD&R announced a new class of partners, including Bill Berutti, Sid Jhaver, and Jon Selib.

Russell Wolff has been named a senior member of the investment team at Sixth Street. Previously, he was Executive Vice President at ESPN. Wolff will likely help the buyout firm identify investments in the media and sports industries. 

Questions? Email us: editor@valueaddpe.com