A consortium of private equity firms, led by Permira and Warburg Pincus, announced a deal to buy investment and accounting software company Clearwater Analytics (NYSE:CWAN) on Sunday, for about $8.4 billion, including debt.
Clearwater buyout offers 47% premium
The consortium is offering to take Clearwater private at $24.55 per share in cash, representing a 47% premium on the company’s share price of $16.69 on November 10, before the potential sale was reported.
Other investors in the deal include Francisco Partners and Temasek. Under the agreement, Clearwater has a “go-shop” window through January 23, 2026, allowing it to solicit and evaluate alternative takeover offers, with a possible 10-day extension for certain bidders.
The transaction is expected to close in the first half of 2026.
Clearwater Posts Strong Q3 Growth
Warburg and Permira backed Clearwater in 2020 and supported its $621 million IPO in 2021. Founded in 2004, the company recently reported strong third-quarter growth, with revenue up 77% to $205.1 million and adjusted EBITDA rising 84% to about $71 million.
Benzinga’s Edge Rankings place Clearwater Analytics in the 21th percentile for momentum and the 99th percentile for growth, reflecting mixed performance in both areas. Check the detailed report here.
Price Action: On a year-to-date basis, Clearwater stock declined 19.15% as per data from Benzinga Pro. On Friday, it rose 1.32% to close at $22.25.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
