Clearwater Acquires Enfusion: $1.5 Billion Investment Management Platform Deal
Clearwater Analytics, a leading provider of accounting, compliance, and risk reporting tools for asset managers, has announced its acquisition of the investment management platform Enfusion for a remarkable $1.5 billion. This strategic move is set to enhance Clearwater’s offerings and expand its reach in the investment management industry.
Details of the Acquisition
On Monday, Clearwater revealed that it has entered into a definitive agreement to acquire Enfusion. To finance this significant purchase, Clearwater secured an $800 million loan and a $200 million revolving line of credit. Enfusion’s shareholders will have the option to receive compensation in cash, stock, or a combination of both. Clearwater anticipates allocating $760 million in cash and issuing approximately 23 million to 28 million new shares to Enfusion shareholders.
Approval and Timeline
The boards of both companies have approved the acquisition terms. Subject to the approval of Enfusion’s shareholders and regulatory bodies, Clearwater expects to finalize the deal by Q2 2025.
About Enfusion
Founded in 1997 and based in Chicago, Enfusion initially operated as a technology and operations consulting firm. Recognizing a market demand for a robust portfolio management system, the managing partners pivoted the company’s focus to develop its current investment tools.
- Enfusion has raised tens of millions in venture capital from notable investors, including ICONIQ Growth and FTV Capital.
- These investors collectively own 45% of Enfusion, alongside CEO Oleg Movchan.
- After going public in 2021, Enfusion achieved a valuation of $1.9 billion.
Financial Performance
Clearwater sees this acquisition as beneficial, paying a 13% premium over Enfusion’s stock price as of January 10. Enfusion has demonstrated promising financial growth, reporting:
- Approximately 15% year-over-year growth in revenue for 2024, totaling around $201 million.
- About 13% year-over-year growth in annual recurring revenue, reaching approximately $210 million.
Future Plans and Strategic Goals
Clearwater aims to leverage Enfusion’s technology to create a comprehensive “front-to-back platform” for the entire investment management sector. According to a recent press release, Clearwater intends to:
- Integrate Enfusion’s portfolio and order management technology into its existing services.
- Expand its presence in the hedge fund industry and geographic areas where Enfusion is already established.
About Clearwater Analytics
Founded in 2004, Clearwater Analytics claims to have over $7.4 trillion of assets managed on its platform. Its impressive roster of clients includes industry giants such as J.P. Morgan Asset Management, Facebook, Cisco, and Oracle.
For more information about Clearwater Analytics and its innovative solutions, visit their official website at Clearwater Analytics.
