(Dec 22): A group of private equity firms led by Permira and Warburg Pincus has agreed to acquire Clearwater Analytics Holdings Inc in a deal valuing the investment and accounting software maker at US$8.4 billion including debt.
Clearwater investors would get US$24.55 a share for an equity value of about US$7 billion, according to a statement confirming an earlier report by Bloomberg News. The company said the price, which is roughly 10% higher than the stock’s last close, represents a 47% premium to the price on Nov 10, before Bloomberg reported the two buyout firms were in talks to buy it.
The private equity group also includes participation from Singaporean state investment company Temasek Holdings Pte and key support from Francisco Partners, according to the statement. The transaction, which will allow Clearwater to consider rival offers for a so-called go-shop period ending Jan 23, is expected to close in the first half of 2026.
Permira and Warburg helped take Clearwater public in 2021. The company’s shares have fallen about 19% this year, closing at US$22.25 on Friday (Dec 19).
Founded in 2004, Boise, Idaho-based Clearwater provides its software to companies in the financial services sector, among others. In November, the company reported a 77% year-over-year increase in third-quarter revenue to US$205 million and an 84% jump in adjusted earnings before interest, taxes, depreciation and amortisation to about US$71 million.
Clearwater completed its acquisition of Enfusion Inc, a software-as-a-service provider to asset managers and hedge funds, in April. That deal was valued at about US$1.5 billion, according to a statement at the time.
See also: Ellison’s pledge to backstop Paramount bid would reshape fortune
Activist investor Starboard Value took a nearly 5% stake in Clearwater and wanted the company to run a robust sales process if it received inbound interest from would-be buyers, Reuters reported this month.
Permira and Warburg invested in Clearwater in 2020. They were among the private equity backers the following year when Clearwater raised US$621 million including over-allotment shares in an initial public offering.
In 2023, both firms offered all of their shares in Clearwater for sale, according to a filing at the time. Warburg still held a 0.3% stake in the company as of Sept 30, data compiled by Bloomberg show.
See also: Alphabet to buy clean energy developer Intersect for US$4.75b to expand data centre footprint
In November, Permira beat out Warburg for a £2.3 billion acquisition of JTC plc, a London-listed provider of fund solutions and corporate services.
Both Permira and Warburg have been active buyers and sellers in recent months. Permira announced the sale of online boats marketplace Boats Group to General Atlantic and CPP Investments earlier in December while Warburg in November led a group acquiring financial services company ECN Capital Corp for approximately C$1.9 billion, including debt.
Uploaded by Arion Yeow
