In a deal that brings together two former competitors in the big data market, Cloudera and Hortonworks have announced a $5.2 billion merger. As part of the agreement, Cloudera stockholders will own approximately a 60% stake in the combined company, with 40% going to Hortonworks.

The combined data processing giant will boast 2,500 customers, $720 million in revenue and $500 million in cash with no debt, according to the companies.

Management and Board of Directors
Following completion of the transaction, Cloudera’s Tom Reilly will serve as CEO; Hortonworks’ Scott Davidson will serve as COO; Hortonworks Arun C. Murthy will serve as Chief Product Officer; and Cloudera’s Jim Frankola will serve as CFO of the combined company.

Hortonworks’ CEO Rob Bearden will join the board of directors. Current Cloudera board member, Marty Cole, will become Chairman of the board of directors.

Our businesses are highly complementary and strategic,” said Reilly. “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 transformation.”

The board of directors of the newly-formed company will initially comprise nine directors. Four directors, including Bearden, will come from Hortonworks’ existing board of directors. Five directors, including Reilly, will come from Cloudera’s existing board of directors. A tenth director will be selected by the combined board.

A majority of the board of directors will be independent under New York Stock Exchange standards.

The transaction is likely to be completed during the first quarter of calendar year 2019.