Clearwater Analytics is building out its investment management platform through the $1.5 billion acquisition of SaaS outfit Enfusion.
The two firms have inked a definitive merger agreement for Clearwater to acquire Enfusion for $11.25 per share, delivered in an approximately equal mix of cash and stock. Clearwater will also pay $30 million to terminate Enfusion’s tax receivable agreement.
Enfusion’s front-office capabilities — including IBOR, portfolio and order management — will be integrated with Clearwater’s middle and back-office tech and client reporting capabilities, creating a unified, cloud-native front-to-back platform.
This, says Clearwater, will allow clients to avoid the error-prone data handoff that happens between the front, middle and back office, which in turn creates major reconciliation issues resulting in inefficiencies, inaccuracies and increased risk.
Clearwater says the deal will help it win asset management clients and business outside of the US.
Sandeep Sahai, CEO, Clearwater Analytics, says: "Today’s announcement is about creating a future where our clients benefit from the synergy of two highly complementary, innovative software leaders, paving the way for a unified, cloud-native front-to-back platform that’s primed to serve institutional investors like never before."