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)
