Clearwater Analytics is expanding its investment management capabilities with the acquisition of Enfusion in a deal valued at $1.5 billion.
The agreement outlines Clearwater’s plan to purchase Enfusion at a rate of $11.25 per share, utilizing a blend of cash and stock. Additionally, Clearwater will incur a $30 million fee to dissolve Enfusion’s tax receivable arrangement.
This acquisition will see the integration of Enfusion’s robust front-office functions, including Investment Book of Record (IBOR), portfolio management, and order management, with Clearwater’s existing middle and back-office technology along with its client reporting solutions. The synergy is expected to create a comprehensive, cloud-native platform that bridges front-to-back processes.
According to Clearwater, this integration will eliminate the common issues associated with the transfer of data between different operational areas, which often leads to reconciliation problems, inefficiencies, and increased risk.
The firm anticipates that this strategic move will enhance its ability to attract asset management clients, particularly in markets outside of the United States.
Sandeep Sahai, CEO of Clearwater Analytics, remarked, “This announcement signifies our commitment to a future where our clients can harness the combined strengths of two forward-thinking software innovators, enabling the development of a cohesive, cloud-native platform designed to elevate service for institutional investors.”