Clearwater to buy Envision for $1.5 billion in expansion push

By Arassu Kanagi Basil and Niket Nishant

(Reuters) – Clearwater Analytics has agreed to acquire Influx in a $1.5 billion cash and stock deal as the financial software maker looks to bolster its global presence and move into the hedge fund industry.

Inflation shareholders will receive $5.85 in cash and $5.40 in Clearwater stock for each share, valuing the Chicago-based firm at $11.25 per share, the companies said on Monday. Enfusion shares closed nearly 9% higher.

The deal will attract mergers between companies that offer complementary services and show how they can gain market share through strategic alliances.

“Everything we do is after the business. And Infusion is focused on everything before the business. We are very, very helpful,” said Sandeep Sahai, CEO of Clearwater.

“Our customers want order management systems and portfolio management systems. We could have built it, but it took us a long time to do it.”

Infusion, which primarily serves hedge funds, provides portfolio management and risk systems for investment funds, and expects revenue of $201 million to $202 million by 2024.

Clearwater 32% premium to Infusion stock end of 2018 It is offering on September 19, Reuters exclusively reported, after receiving interest from suitors including private equity firms and exploring options including a sale.

The company has expressed interest from a number of buyers, including Francisco Partners, Vista Equity Partners and Eirenic Capital Management in 2023.

Some shareholders associated with investment companies FTV Management Company and ICONIQ Growth and Enfusion CEO Oleg Movchan have agreed to support the deal, holding 45% of the voting power.

JP Morgan Securities and Kirkland & Ellis advised Clearwater Analytics while Goldman Sachs & Decher advised the Infusion Special Committee. Goodwin recommended Procter Infection.

The deal is expected to close in the second quarter of 2025.

(Reporting by Arasu Kanagi Basil in Bengaluru; Editing by Anil D’Silva, Vijay Kishore and Mohammad Safi Shamsi)