Clearwater Analytics to acquire investment management platform Enfusion for $1.5bn
Clearwater Analytics has inked a definitive merger agreement to acquire fellow Software-as-a-Service (SaaS) investment management platform Enfusion through a cash and stock deal valued at approximately $1.5 billion.
As part of the agreement, which has been unanimously approved by the boards of both companies, Enfusion shareholders will receive consideration equal to $11.25 per share at a 13% premium over the closing price on 10 January.
Clearwater will pay about $760 million in cash and issue 23 to 28 million new shares to Enfusion shareholders as part of this process, and will also pay off Enfusion’s $30 million tax receivable agreement.
To finance the deal, the company has arranged an $800 million term loan B, alongside a $200 million revolving credit line. The benefactors of these arrangements have not been disclosed.
The transaction is expected to close in Q2 2025, subject to the approval of Enfusion shareholders, the receipt of required regulatory approvals, and customary closing conditions.
Founded in 1997 and based in Chicago, US, Enfusion operates a cloud-based platform which consolidates front, middle and back-office functions for over 800 investment managers worldwide.
In a statement, Clearwater says it will leverage the purchase on Enfusion to deliver “the first cloud-native front-to-back platform for the entire investment management industry”.
This delivery will include integrating Enfusion’s investment book of record (IBOR), portfolio and order management, and other front-office capabilities with its own middle and back-office solutions and client reporting functions.
The offering’s ascent is expected to fortify Clearwater’s position in the asset management and hedge fund industry, while accelerating the company’s growth globally, particularly in Europe and Asia, where Enfusion generates 38% of its revenue.
“We expect to accelerate growth based on our increased right-to-win, higher back-to-base sales, greater presence across key geographies and increased Total Addressable Market (TAM),” explains Clearwater CEO Sandeep Sahai.