Cloud: the French Talend bought for 2.4 billion dollars

The board of directors of the French group listed on the Nasdaq has accepted the offer from the American fund Thoma Bravo.

Talend is definitely going under the American flag. The company, which specializes in cloud data integration solutions, has accepted the memorandum of understanding for the takeover bid offered by US venture capital fund Thoma Bravo, which is offering $ 66 in cash by share, i.e. a premium of 29% on the share price on March 9. This values ​​the company created in 2005 by two French people, Bertrand Diard and Fabrice Bonan, at 2.4 billion dollars. At the end of the operation (a thirty-day “go-shop” period allows Talend to solicit alternative proposals), Talend will be withdrawn from the listing, which had entered the Nasdaq, the prestigious American marketplace in 2016. dedicated to technology companies. Talend was then among the handful of French precursors to access this “Grail”.

Competitive universe

While Talend’s head office is located in Redwood City, California and its managing director, Christal Bemont, is American, the majority of its 1,200 employees are in France (Suresnes and Nantes, where the company has kept its R&D in particular)
« Transaction with Thoma Bravo will provide Talend with additional capital, resources and expertise to take advantage of a large market opportunity“, Estimates Christal Bemont, in a press release. Talend is taking full advantage of the digitalization of businesses and the explosion of the cloud that accompanies it, but also operates in an ultra-competitive world, alongside competitors such as IBM and Oracle. In 2020, its revenue reached $ 287.5 million (+ 16% compared to 2019), it doubled its recurring revenue in the cloud. But it also widened its net loss to $ 79.6 million (from $ 61.5 million in 2019).

High potential companies

The Thoma Bravo fund is well known in the technological world, with a portfolio of around forty companies in the sector. It has also set up a cybersecurity center (Sophos, Veracode, ConnectWise, Imperva, etc.). With his pockets full – he still raised 22.5 billion euros in 2020 via three funds – Thoma Bravo is ready to pay high multiples for companies with high potential.

For France, it is a new unicorn that the country has helped to grow (Bpifrance has been an investor) which is moving a little further away. The Hexagon is not intended to finance champions for third parties, we are assured on the side of the public investment bank. The market financing problems of French technology companies have been identified, notably by the Tibi report, and are being addressed at the highest level of the State, but this will take time. The goal remains to have one or two Next 40 companies listed on the Paris Stock Exchange by 2025.