Cloudera is merging with its rival Hortonworks in an all-stock deal worth $5.2 billion. Cloudera shareholders will own 60 per cent of the combined company and Hortonworks shareholders will own the remaining 40 per cent.

Both companies sell services around open-source platform Hadoop, helping companies manage the complex big data technology.

The transaction, which has been unanimously approved by the boards of both companies, will create the world’s leading next generation data platform provider, spanning multi-cloud, on-premises and the edge, the companies said in a join-statement.

The deal, which still requires shareholder approval and US antitrust clearance, is expected to close in the first quarter of next year.

Following completion of the transaction, Cloudera’s CEO, Tom Reilly, will retain the top job while Hortonworks’ CEO Rob Bearden, will join the board of directors.

Hortonworks’ chief operating officer Scott Davidson will continue to serve as COO and Cloudera’s chief financial officer, Jim Frankola, will serve as CFO of the combined company.

The board of directors of the newly-formed company will initially comprise nine directors. Four directors from Hortonworks’ existing board and five from Cloudera. A tenth director will be selected by the combined board.

Cloudera CEO Tom Reilly said the merger is “highly complementary and strategic”.

“By bringing together Hortonworks’ investments in end-to-end data management with Cloudera’s investments in data warehousing and machine learning, we will deliver the industry’s first enterprise data cloud from the edge to AI. This vision will enable our companies to advance our shared commitment to customer success in their pursuit of digital transformatio,” Reilly said.

The merger is expected to result in more than $125 million in savings.

“This compelling merger will create value for our respective stockholders and allow customers, partners, employees and the open source community to benefit from the enhanced offerings, larger scale and improved cost competitiveness inherent in this combination,” said Bearden, CEO of Hortonworks.

“Together, we are well positioned to continue growing and competing in the streaming and IoT, data management, data warehousing, machine learning/AI and hybrid cloud markets. Importantly, we will be able to offer a broader set of offerings that will enable our customers to capitalize on the value of their data.”

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