Former Investors Eye "Buyback"? Warburg Pincus and Permira in Talks to Acquire Clearwater Analytics (CWAN.US)

Stock News11-15

Global private equity firms Warburg Pincus and Permira are reportedly in discussions to acquire investment and accounting software provider Clearwater Analytics Holdings, Inc. (CWAN.US), according to sources familiar with the matter. The two firms, which backed Clearwater's 2021 IPO, may finalize a deal in the coming weeks. Neither Warburg Pincus, Permira, nor Clearwater has immediately responded to requests for comment.

The specific acquisition price under negotiation remains undisclosed. Sources indicate that talks are ongoing but could face delays or fall through, with the possibility of competing bidders emerging. The news drove Clearwater's shares up over 19% in after-hours trading.

Clearwater, which went public in 2021 with a $5.5 billion valuation, currently holds a market capitalization of approximately $5.63 billion as of Friday's close. Founded in 2004 and headquartered in Boise, Idaho, the company provides software solutions primarily to financial services firms.

Recent earnings revealed a 77% year-over-year revenue surge to $205 million in Q3, while adjusted EBITDA jumped 84% to around $71 million. In April, Clearwater completed its $1.5 billion acquisition of Enfusion Inc., a software services provider for asset managers and hedge funds.

Warburg Pincus and Permira initially invested in Clearwater in 2020 and supported its 2021 IPO, which raised $621 million (including over-allotments). A 2023 filing showed both firms had planned to divest their entire stakes. As of June 30, Warburg Pincus retained a 0.3% ownership stake.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment