MariaDB, an open-source relational database management system (RDBMS), has been acquired by private investment company K1 Investment Management. MariaDB’s tenure as a public company was brief, having gone public in December 2022 via a special purpose acquisition company (SPAC).
The acquisition follows reports that MariaDB has been suffering poor financial health and that has impacted its customer base. Consequently, the company has been seeking a buyer.
Earlier this year, MariaDB disclosed it had received takeover interest from K1, which is one of the largest investors in small-cap enterprise software companies.
Under the initial proposal, K1 offered to acquire MariaDB for $37 million, equivalent to 55 cents per share. That was 189 percent more than the listed value of a MariaDB share at that time.
K1 has now completed its tender offer to acquire all outstanding shares of MariaDB, and now fully owns MariaDB. Further details about the final terms or additional valuations have not been disclosed.
Founded in 2009, MariaDB emerged as a popular open-source database management system, developed as a fork of MySQL. It is recognized for providing high performance, scalability, and advanced features as a cost-effective alternative to proprietary databases.
The offerings include MariaDB Enterprise Server, an enhanced and secured version of MariaDB Server for production deployments with stability, reliability, and support requirements. The company also offers MariaDB skySQL, a fully managed database-as-a-service (DBaaS) platform.
MariaDB is headquartered in Silicon Valley and Dublin, Ireland. It has over 700 active customers across various industries including finance, software development, and telecommunications. Notable clients include Nokia, Deutsche Bank, Samsung, Redhat, and several public sector entities including the U.S. Department of Defense.
Along with its acquisition, MariaDB announced former Micro Focus executive Rohit de Souza as the new CEO, succeeding Paul O’Brien, who served for just 16 months. O’Brien will remain an advisor at the company.
“We are thrilled to welcome MariaDB to the K1 portfolio and to have Rohit leading the company into its next phase of growth,” said Sujit Banerjee, Managing Director of K1 Operations, LLC. “Together, we aim to accelerate product innovation and continue MariaDB’s mission of delivering high-quality, enterprise-grade solutions to meet the growing demands of the market.”
(Tee11/Shutterstock)
When MariaDB went public in late 2022, it had set its share price at $11.55, with an open-day peak valuation of $445 million. However, going public was not well received, and the share price tumbled around 40% to $6.70.
Several factors contributed to this decline, including unfavorable market conditions affecting investor sentiment, concerns about the company’s financial health, and a challenging competitive landscape with established players such as Oracle and Microsoft SQL Server.
In 2023, MariaDB conducted two major rounds of layoffs, reducing its workforce by one-third. Additionally, a series of disappointing earnings reports led the NYSE to notify MariaDB that it was not meeting listing requirements. Specifically, the company’s average global market capitalization had fallen below the $50 million threshold required over a consecutive 30-day trading period.
With the equation of K1, MariaDB has the financial support to stabilize its operations and leverage K1’s expertise for strategic guidance. It also gets an opportunity to enhance its capabilities and drive innovation in database solutions.
“As we look to the future, with new leadership and the partnership of K1, I have never been more confident in the future of MariaDB. It has been my pleasure to serve MariaDB as CEO and I look forward to supporting Rohit as he transitions into the business,” said Paul O’Brien, former CEO of MariaDB.
Related Items
Don’t Believe the Big Database Hype, Stonebraker Warns
MariaDB SkySQL Continues to Gain Industry Recognition
Oracle Bolsters Big Data, Analytics, and AI at CloudWorld
Source link
lol
