Talend taken private in $2.4bn deal

May 2021 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

May 2021 Issue

In a move that builds upon its leadership position in the cloud data integration market, open source data integration platform Talend is to be acquired by private equity firm Thoma Bravo in a transaction valued at $2.4bn.

Under the terms of the acquisition, Thoma Bravo will acquire all of the outstanding ordinary shares and American depositary shares (ADS) of Talend for $66.00 per ordinary share and ADS, the latter representing one ordinary share, in cash.

Subject to and upon completion of the transaction, Talend would become a private company and continue investing in its cloud transition, as well as products and solutions that serve the evolving data needs of its customers. The Talend board of directors has unanimously approved the acquisition.

Furthermore, the parties have agreed on certain expense reimbursement and termination fees payable by Talend to Thoma Bravo under certain circumstances, including if the Talend board determines not to issue a positive recommendation following completion of the appropriate works council consultations, subsequently changes or withdraws its recommendation, or terminates to accept a superior proposal.

“We are pleased to move forward with Thoma Bravo, as the transaction will deliver compelling and certain cash value to Talend shareholders and significant strategic, long-term benefits for our customers, employees and other stakeholders,” said Steve Singh, chairman of Talend. “Our board is focused on driving shareholder value and has periodically evaluated potential transaction alternatives in the context of our standalone plan over the past several years.

“With the successful advancement of our transformation effort led by our chief executive over the past year, the Talend board and management team conducted a targeted process with potential financial and strategic parties to determine the best path forward for the company,” he continued. “We believe the transaction with Thoma Bravo validates the Talend team’s success in building a data market leader.”

For its part, Thoma Bravo is confident that it can apply its experience working with market-leading software companies to build upon Talend’s leadership position in the cloud data integration market and accelerate its transition to the cloud.

“The last 12 months have underscored the importance of digital transformation and the unique and vital role Talend plays in ensuring enterprises can trust the data fueling their business,” said Christal Bemont, chief executive of Talend. “I am pleased with how the team has executed through the challenges of 2020 and successfully delivered on the strategic initiatives and targets we laid out a year ago.”

The tender offer and related transactions are expected to close in the third quarter and fourth quarter of 2021 respectively, at which point Talend will no longer be listed on any public market.

Serving as financial adviser to Talend is Qatalyst Partners with Wilson Sonsini Goodrich & Rosati, P.C. and Gide Loyrette Nouel A.A.R.P.I. serving as legal counsel. Kirkland & Ellis LLP is serving as legal counsel to Thoma Bravo.

Ms Bemont concluded: “As we look forward, the transaction with Thoma Bravo – a firm with a successful track record of helping the companies it acquires achieve long-term, sustainable growth – will provide Talend with additional capital, resources and expertise to execute against our mission and leverage a large market opportunity to help all organisations become data-driven.”

Fraser Tennant