Permira, Warburg Agree to Buy Clearwater Analytics for $8.4 Billion
(Bloomberg) — A group of private equity firms led by Permira and Warburg Pincus agreed to buy Clearwater Analytics Holdings Inc. in a deal that values the investment and accounting software maker at $8.4 billion, including debt.
Clearwater investors will receive $24.55 per share for an equity value of approximately $7 billion, according to the statement, which confirmed an earlier report by Bloomberg News. The company said the price, roughly 10% higher than the stock’s last close, represented a 47% premium over the price on Nov. 10, before Bloomberg reported that two buyout firms were in talks to buy.
The private equity group also includes participation from Singaporean state investment firm Temasek Holdings Pte and key support from Francisco Partners, according to the statement. The transaction, which will allow Clearwater to evaluate competing bids for a “go-shop” period ending Jan. 23, is expected to close in the first half of 2026.
Permira and Warburg helped Clearwater go public in 2021. The company’s shares are down nearly 19% this year, closing at $22.25 on Friday.
Founded in 2004, Boise, Idaho-based Clearwater provides its software to companies in the financial services industry, among others. In November, the company reported a 77% year-over-year increase in third-quarter revenue to $205 million and an 84% increase in adjusted earnings before interest, taxes, depreciation and amortization to nearly $71 million.
Clearwater completed its acquisition of Enfusion Inc., a software-as-a-service provider to asset managers and hedge funds, in April. According to a statement made at the time, the value of this agreement was approximately $1.5 billion.
Activist investor Starboard Value has taken a nearly 5% stake in Clearwater, Reuters reported this month, and has urged the company to pursue a vigorous sales process if it attracts interest from potential buyers.
Permira and Warburg invested in Clearwater in 2020. The following year, they were among the private equity backers from whom Clearwater raised $621 million, including over-allotment shares, in an initial public offering.
According to a filing made at the time, both companies offered their entire shares in Clearwater for sale in 2023. Data compiled by Bloomberg show Warburg still held a 0.3% stake in the company as of Sept. 30.
In November, Permira beat out Warburg to acquire London-listed funding solutions and corporate services provider JTC Plc for £2.3 billion ($3.1 billion).
Both Permira and Warburg have been active buyers and sellers in recent months. Permira announced the sale of online boat marketplace Boats Group to General Atlantic and CPP Investments in early December, while Warburg in November led a group to acquire financial services company ECN Capital Corp. for about C$1.9 billion ($1.4 billion), including debt.
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