Temasek among investors in $10.9 billion purchase of Clearwater Analytics
Sign up now: Get ST's newsletters delivered to your inbox
US-based Clearwater makes software that helps companies manage their investment portfolios.
PHOTO: REUTERS
Follow topic:
NEW YORK - A group of private equity firms led by Permira and Warburg Pincus has clinched a deal to acquire investment and accounting software maker Clearwater Analytics Holdings for about US$8.4 billion ($10.9 billion), including debt, the parties said in a joint statement on Dec 21.
The deal includes the participation of several minority investors, including Singapore’s investment company Temasek and Francisco Partners.
Permira and Warburg Pincus have agreed to take Clearwater private for US$24.55 per share in cash. The deal price offers a premium of 47 per cent on Clearwater’s share price of US$16.69 on Nov 10, before news reports of a potential sale.
“Both firms understand our business and the technology industry and have proven track records fostering growth for some of the largest and fastest-growing technology businesses globally,” Clearwater chief executive Sandeep Sahai said.
The deal provides for a “go-shop” period ending Jan 23, 2026, during which Clearwater may solicit and evaluate alternative acquisition proposals, with a possible 10-day extension for certain bidders.
The transaction is expected to be completed in the first half of 2026, after which the investment and accounting software maker will become a privately held company.
US-based Clearwater makes software that helps companies manage their investment portfolios.
The company operates a single, multi-tenant cloud platform that aggregates portfolio data and performs complex accounting and analytics in one place. That structure allows for integration of artificial intelligence-driven tools to generate more precise, on-demand insights into their portfolios, improving reporting and client service.
While some investors may view advances in artificial intelligence as a potential threat to the business, a source familiar with the deal said the opportunity to deepen Clearwater’s AI capabilities and expand the value of its platform was a key reason the take-private transaction was attractive.
A source familiar with the matter told Reuters in November that Permira and Warburg Pincus had submitted a joint offer to purchase Clearwater, roughly four years after they helped the software maker get listed on the stock market.
Last week, activist investor Starboard Value took a nearly 5 per cent stake in Clearwater, betting that it was undervalued amid investor concerns over its integration of recent acquisitions.
Clearwater, which went public in 2021 at a valuation of US$5.5 billion, had a market capitalisation of around US$6.5 billion as of Dec 21, according to LSEG data.
Permira and Warburg Pincus remained majority owners of Clearwater through the 2021 initial public offering and reduced their stake over time, including by selling certain share classes. REUTERS
