World Stock Watch

Financial Software Powerhouse Emerges: Clearwater Analytics Acquires Enfusion

In a bold move to expand its global footprint and tap into the lucrative hedge fund industry, Clearwater Analytics has agreed to acquire Enfusion in a massive $1.5 billion cash-and-stock deal. This strategic alliance is expected to create a financial software powerhouse, offering a comprehensive suite of services to investment firms worldwide.

Complementary Strengths Unite

The acquisition brings together two companies with complementary strengths. Clearwater Analytics, a leading provider of post-trade services, will now have access to Enfusion’s expertise in pre-trade solutions, including order management and portfolio management systems. “Our clients need these services, and Enfusion’s capabilities will enable us to deliver a more comprehensive offering,” said Clearwater CEO Sandeep Sahai.

Enfusion’s Hedge Fund Expertise

Enfusion, a Chicago-based firm, has built a reputation as a trusted provider of portfolio management and risk systems to hedge funds and investment firms. With projected revenues of $201 million to $202 million in 2024, Enfusion’s expertise will significantly enhance Clearwater’s capabilities in this space.

A Premium Deal

Clearwater’s offer of $5.85 in cash and $5.40 in stock per Enfusion share represents a 32% premium to Enfusion’s closing price on September 19, when Reuters first reported the company’s exploration of strategic options. The deal has received support from key shareholders, including Enfusion CEO Oleg Movchan, who collectively hold about 45% of voting power.

Advisors and Timeline

J.P. Morgan Securities and Kirkland & Ellis advised Clearwater Analytics, while Goldman Sachs and Dechert advised Enfusion’s special committee. Goodwin Procter advised Enfusion. The deal is expected to close in the second quarter of 2025, pending regulatory approvals.

This landmark acquisition is set to reshape the financial software landscape, creating a dominant player with a broad range of services and a strong presence in the global market.