Clearwater to Acquire Enfusion for $1.5 Billion

Clearwater Analytics to Acquire Enfusion for $1.5 Billion

Clearwater Analytics, a provider of accounting, compliance, and risk reporting solutions tailored for asset managers, announced on Monday a definitive agreement to acquire Enfusion, an investment management platform. The acquisition is valued at $1.5 billion.

Financing the Acquisition

Clearwater has secured $800 million in loan financing to support the transaction. Additionally, a $200 million revolving line of credit has been established.

Enfusion’s shareholders will have the option to receive consideration in the form of cash, stock, or a combination of both. The anticipated cash payment is $760 million.

Approximately 23 to 28 million new shares will be issued to Enfusion shareholders as part of the deal.

Deal Approval and Timeline

The boards of directors of both companies have already approved the terms of the agreement. Finalization of the acquisition is contingent upon shareholder approval from Enfusion and regulatory clearances.

Clearwater anticipates the transaction will be completed in the second quarter of 2025.

Enfusion’s Background

Founded in 1997, Enfusion initially operated as a technology and operations consulting firm based in Chicago.

Recognizing a need for a comprehensive portfolio management system, the company’s leadership shifted its focus to developing its current suite of investment tools.

Investment and Public Offering

Enfusion successfully raised substantial venture capital funding from investors such as ICONIQ Growth and FTV Capital. These investors, alongside CEO Oleg Movchan, collectively hold 45% ownership of the company.

The company went public in 2021, achieving a valuation of $1.9 billion at that time.

Strategic Rationale and Financials

Clearwater believes the acquisition represents a strategic investment, citing Enfusion’s positive recent financial performance. The purchase price reflects a 13% premium over Enfusion’s stock price as of January 10th.

Preliminary figures for 2024 indicate approximately 15% year-over-year revenue growth for Enfusion, reaching around $201 million. Annual recurring revenue also experienced growth, increasing by roughly 13% to $210 million.