Permira, Warburg Agree to Buy Clearwater Analytics for $8.4 Billion

Core Viewpoint - A group of private equity firms led by Permira and Warburg Pincus has agreed to acquire Clearwater Analytics Holdings Inc. for a total deal value of $8.4 billion, including debt [1]. Group 1: Acquisition Details - Clearwater investors will receive $24.55 per share, equating to an equity value of approximately $7 billion, which is about 10% higher than the stock's last close and represents a 47% premium compared to the price on November 10 [2]. - The acquisition group also includes Singaporean state investment company Temasek Holdings Pte and support from Francisco Partners, with a go-shop period for rival offers ending on January 23, 2026 [3]. - The transaction is expected to close in the first half of 2026 [3]. Group 2: Company Performance - Clearwater, founded in 2004 and based in Boise, Idaho, provides software primarily to the financial services sector [4]. - In November, Clearwater reported a 77% year-over-year increase in third-quarter revenue to $205 million and an 84% increase in adjusted EBITDA to approximately $71 million [4]. Group 3: Recent Activities - Clearwater completed the acquisition of Enfusion Inc., valued at about $1.5 billion, in April [5]. - Activist investor Starboard Value acquired a nearly 5% stake in Clearwater, advocating for a robust sales process in light of potential buyer interest [5]. - Permira and Warburg previously invested in Clearwater in 2020 and were involved in its IPO, raising $621 million in 2021 [6].