(Bloomberg) -- A group of private equity firms led by Permira and Warburg Pincus has agreed to acquire Clearwater Analytics Holdings Inc. in a deal valuing the investment and accounting software maker at $8.4 billion including debt.
Clearwater investors would get $24.55 a share for an equity value of about $7 billion, according to a statement confirming an earlier report by Bloomberg News. The company said the price, which is roughly 10% higher than the stock’s last close, represents a 47% premium to the price on Nov. 10, before Bloomberg reported the two buyout firms were in talks to buy it.
The private equity group also includes participation from Singaporean state investment company Temasek Holdings Pte and key support from Francisco Partners, according to the statement. The transaction, which will allow Clearwater to consider rival offers for a so-called go-shop period ending Jan. 23, is expected to close in the first half of 2026.
Permira and Warburg helped take Clearwater public in 2021. The company’s shares have fallen about 19% this year, closing at $22.25 on Friday.
Founded in 2004, Boise, Idaho-based Clearwater provides its software to companies in the financial services sector, among others. In November, the company reported a 77% year-over-year increase in third-quarter revenue to $205 million and an 84% jump in adjusted earnings before interest, taxes, depreciation and amortization to about $71 million.
Clearwater completed its acquisition of Enfusion Inc., a software-as-a-service provider to asset managers and hedge funds, in April. That deal was valued at about $1.5 billion, according to a statement at the time.
Activist investor Starboard Value took a nearly 5% stake in Clearwater and wanted the company to run a robust sales process if it received inbound interest from would-be buyers, Reuters reported this month.
Permira and Warburg invested in Clearwater in 2020. They were among the private equity backers the following year when Clearwater raised $621 million including over-allotment shares in an initial public offering.
In 2023, both firms offered all of their shares in Clearwater for sale, according to a filing at the time. Warburg still held a 0.3% stake in the company as of Sept. 30, data compiled by Bloomberg show.
In November, Permira beat out Warburg for a £2.3 billion ($3.1 billion) acquisition of JTC Plc, a London-listed provider of fund solutions and corporate services.
Both Permira and Warburg have been active buyers and sellers in recent months. Permira announced the sale of online boats marketplace Boats Group to General Atlantic and CPP Investments earlier in December, while Warburg in November led a group acquiring financial services company ECN Capital Corp. for approximately C$1.9 billion ($1.4 billion), including debt.
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