Clearwater Analytics acquires software maker Enfusion for $1.5 billion to expand global reach

Clearwater Analytics is set to acquire Enfusion in a $1.5 billion cash-and-stock deal aimed at strengthening its international presence and stepping into the hedge fund market.

Under the acquisition agreement announced Monday, Enfusion shareholders will receive $5.85 in cash and $5.40 in Clearwater stock per share, valuing the Chicago-based company at $11.25 per share. This price represents a 32% premium compared to Enfusion’s closing stock price on September 19, Reuters reported.

Enfusion has been on the radar of potential acquirers before, with firms like Francisco Partners, Vista Equity Partners, and Irenic Capital Management expressing interest as far back as 2023. Known for its portfolio management and risk systems tailored to hedge funds, Enfusion is projecting $201 million to $202 million in revenue for 2024.

Enfusion, founded in 1998 by Stephen Malherbe and Tarek Hammoud, delivers cloud-based portfolio management and risk solutions, along with middle and back-office services. The company focuses on helping investment managers tackle critical business challenges with streamlined and efficient tools.

“Today’s announcement is about creating a future where our clients benefit from the synergy of two highly complementary, innovative software leaders, paving the way for a unified, cloud-native front-to-back platform that’s primed to serve institutional investors like never before. We expect to accelerate growth based on our increased right-to-win, higher back-to-base sales, greater presence across key geographies, and increased Total Addressable Market (TAM),” Clearwater Analytics CEO Sandeep Sahai said in a news release.

The acquisition has already received backing from major Enfusion shareholders, including investment firms FTV Management Company and ICONIQ Capital, as well as CEO Oleg Movchan, who collectively hold around 45% of the company’s voting power.

J.P. Morgan Securities and Kirkland & Ellis are advising Clearwater Analytics on the transaction, while Goldman Sachs and Dechert are working with Enfusion’s special committee. Goodwin Procter is providing additional counsel to Enfusion.

Founded in 2004 by David Boren, Michael Boren, and Douglas Bates, Clearwater Analytics is a SaaS company specializing in automated investment accounting, reporting, and analytics solutions. Originally headquartered in Boise, Idaho, the company has grown significantly over the years, establishing a global footprint with offices in New York, Edinburgh, London, and New Delhi.

The deal is expected to close in the second quarter of 2025. This move marks a strategic step for Clearwater Analytics as it enters new markets and strengthens its offerings in financial software.