Clearwater Analytics, an organization creating accounting, compliance, and danger reporting instruments for asset managers, mentioned on Monday it has entered right into a definitive settlement to accumulate funding administration platform Enfusion for $1.5 billion.
Clearwater, which says it has obtained an $800 million mortgage to fund the transaction, together with a $200 million revolving line of credit score, will let Enfusion’s shareholders elect to obtain money, inventory, or a mixture. Clearwater expects to pay $760 million in money, and subject between roughly 23 million and 28 million new shares to Enfusion shareholders.
Each corporations’ boards have agreed to the phrases. Ought to Enfusion’s shareholders and regulators approve it, Clearwater expects the deal to shut in Q2 2025.
Enfusion, based mostly in Chicago, was based in 1997 as a know-how and operations consulting agency. After noticing a spot available in the market for a portfolio administration system, Enfusion’s managing companions targeted their efforts on launching the corporate’s present investing tooling.
Enfusion raised tens of hundreds of thousands of {dollars} in enterprise capital from buyers, together with ICONIQ Progress and FTV Capital, which personal 45% of the corporate together with Enfusion’s CEO, Oleg Movchan. After going public in 2021, Enfusion was valued at $1.9 billion.
Clearwater asserts that its buy, for which it’s paying a 13% premium over Enfusion’s inventory worth as of January 10, is a clever one, pointing to Enfusion’s encouraging latest financials. Enfusion reported preliminary ~15% year-over-year development in income in 2024 to ~$201 million, and preliminary ~13% year-over-year development in annual recurring income to ~$210 million.
Clearwater additionally sees Enfusion as a method to constructing a “front-to-back platform for your complete funding administration trade.” In a press launch, Clearwater says it plans to combine Enfusion’s portfolio and order administration know-how into its choices whereas increasing into the hedge fund trade and geographies the place Enfusion already has a presence.
Clearwater, launched in 2004, claims to have over $7.4 trillion of belongings on its platform. Notable clients embrace J.P. Morgan Asset Administration, Fb, Cisco, and Oracle.
