Permira, Warburg to buy Clearwater Analytics for $8.4 billion

By Milana Vinn NEW YORK, Dec 21 (Reuters) – A group of private equity firms led by Permira and Warburg Pincus has clinched a deal to acquire investment and accounting software maker Clearwater Analytics Holdings for about $8.4 billion, including debt, the parties said in a joint statement on Sunday. Permira and Warburg Pincus have agreed to take Clearwater private for $24.55 per share in cash. The deal price offers a premium of 47% on Clearwater's share price of $16.69 on November 10, before news reports of a potential sale.  The deal, which was announced on Sunday, includes the participation of several minority investors, including Francisco Partners and Temasek. "Both firms understand our business and the technology industry and have proven track records fostering growth for some of the largest and fastest-growing technology businesses globally," Clearwater CEO Sandeep Sahai said. The deal provides for a "go-shop" period ending January 23, 2026, during which Clearwater may solicit and evaluate alternative acquisition proposals, with a possible 10-day extension for certain bidders. The transaction is expected to be completed in the first half of 2026, after which the investment and accounting software maker will become a privately held company. AI CAPABILITIES Based in Boise, Idaho, Clearwater makes software that helps companies manage their investment portfolios. The company operates a single, multi-tenant cloud platform that aggregates portfolio data and performs complex accounting and analytics in one place. That structure allows for integration of AI-driven tools to generate more precise, on-demand insights into their portfolios, improving reporting and client service. While some investors may view advances in AI as a potential threat to the business, a source familiar with the deal said the opportunity to deepen Clearwater's AI capabilities and expand the value of its platform was a key reason the take-private transaction was attractive. A source familiar with the matter told Reuters last month that Permira and Warburg Pincus had submitted a joint offer to purchase Clearwater, roughly four years after they helped the software maker get listed on the stock market. Last week, activist investor Starboard Value took a nearly 5% stake in Clearwater, betting that it was undervalued amid investor concerns over its integration of recent acquisitions. Clearwater, which went public in 2021 at a valuation of $5.5 billion, had a market capitalization of around $6.5 billion as of Sunday, according to LSEG data. Permira and Warburg Pincus remained majority owners of Clearwater through the 2021 IPO and reduced their stake over time, including by selling certain share classes.  JP Morgan served as a financial advisor to the company, Goldman Sachs served as an advisor to the buyer group, and PJT Partners served as a financial advisor to the special committee, the statement said.  (Reporting by Milana Vinn in New York and Ananya Palyekar, Abu Sultan in Bengaluru; Editing by Gareth Jones, Chizu Nomiyama and Paul Simao)

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