Clearwater Analytics (CWAN.N) has reached an agreement to acquire financial software maker Enfusion (ENFN.N) in a $1.5 billion cash-and-stock deal. The transaction, which is part of Clearwater’s strategy to enhance its international footprint and penetrate the hedge fund industry, involves Enfusion shareholders receiving $5.85 in cash and $5.40 in Clearwater stock per share. This values the Chicago-based company at $11.25 per share, a 32% premium over Enfusion’s stock price on September 19, the day Reuters first reported the potential deal.
The announcement led to a nearly 9% increase in Enfusion’s stock price. The deal is seen as an effort by Clearwater to expand its capabilities by integrating Enfusion’s services, which focus on portfolio management and risk systems primarily for hedge funds. Clearwater’s CEO, Sandeep Sahai, highlighted the complementary nature of the two companies, with Clearwater’s post-trade analytics aligning with Enfusion’s pre-trade systems.
Enfusion, which projects a revenue of $201 million to $202 million in 2024, has attracted acquisition interest in the past, including from private equity firms like Francisco Partners, Vista Equity Partners, and Irenic Capital Management. The deal has garnered support from certain major shareholders, including FTV Management Company, ICONIQ Growth, and Enfusion’s CEO Oleg Movchan, who collectively hold about 45% of Enfusion’s voting power.
J.P. Morgan Securities and Kirkland & Ellis advised Clearwater, while Goldman Sachs and Dechert assisted Enfusion’s special committee in the transaction. The deal is expected to close in the second quarter of 2025.