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Clearwater Analytics, a company that develops accounting, compliance and risk reporting tools for asset managers, he said On Monday it entered into a definitive agreement to acquire investment management platform Enfusion for $1.5 billion.
Clearwater, which says it obtained an $800 million loan to finance the transaction, along with a $200 million revolving credit line, will allow Enfusion shareholders to choose to receive cash, stock, or a mix. Clearwater expects to pay $760 million in cash, and issue between about 23 million and 28 million new shares to Enfusion shareholders.
The boards of both companies agreed to the terms. If Enfusion shareholders and regulators approve, Clearwater expects the deal to close in Q2 2025.
Chicago-based Enfusion was founded in 1997 as a technology and operations consulting firm. After noticing a gap in the market for a portfolio management system, Enfusion’s managing partners focused their efforts on launching the company’s current investment tool.
Enfusion has raised tens of millions of dollars in venture capital from investors including Iconiq Growth and FTV Capital, which owns 45% of the company along with Enfusion CEO Oleg Movchan. After publishing in 2021, Enfusion was evaluated to $1.9 billion.
Clearwater claims that its purchase, for which it paid a premium of 13% above the price of Enfusion’s shares on January 10, is a wise one, indicating the recent financial encouragement of Enfusion. Enfusion reported preliminary growth of ~15% year-over-year in revenue in 2024 to ~$201 million, and preliminary growth of ~13% year-over-year in recurring annual revenue to ~$210 million .
Clearwater also sees Enfusion as a means to build a “front-to-back platform for the entire investment management industry.” In a press releaseClearwater says it plans to integrate Enfusion’s portfolio and order management technology into its offerings as it expands into the hedge fund industry and geographies where Enfusion already has a presence.
Clearwater, launched in 2004, claims to have more than $7.4 trillion in assets on its platform. Notable clients include JP Morgan Asset Management, Facebook, Cisco and Oracle.
