Clearwater Analytics (CWAN) is set to go private after agreeing to an $8.4 billion acquisition led by private equity firm Permira, alongside Warburg Pincus. The deal marks a major milestone for the financial software company and highlights continued private equity interest in high-quality data and analytics businesses.
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For context, Clearwater is a U.S. fintech company that offers cloud-based software to help institutional investors manage investment data, accounting, reporting, compliance, and analytics.
More Details About the Deal
Under the deal, Clearwater’s shareholders will receive $24.55 per share in cash once the transaction closes. The price is about 47% higher than the stock’s trading level on November 10, which was the last day before reports of a possible deal surfaced.
The investor group includes Permira and Warburg Pincus, along with Singapore’s state-backed investor Temasek. Meanwhile, Francisco Partners is backing the transaction.
The transaction still needs approval from shareholders and regulators and is expected to close in the first half of 2026, assuming all standard conditions are met. After the deal is completed, Clearwater Analytics will be removed from the NYSE and will operate as a private company.
What the Deal Means for Clearwater Analytics
The deal is a positive move for Clearwater Analytics and its shareholders. Clearwater believes that becoming a private company will give it more freedom to focus on long-term growth, product investment, and strategic expansion. Looking ahead, the company aims to offer advanced solutions for alternative assets, top-tier risk analytics, and unique data-driven tools, continuing to serve clients worldwide.
For Clearwater shareholders, the deal gives an immediate cash payout at a significant premium, removing the uncertainty tied to public market volatility. While investors will no longer participate in future upside once the deal closes, the offer locks in value at a time when private equity firms are showing strong confidence in Clearwater’s business model.
What Is the Price Prediction for Clearwater Analytics Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CWAN stock based on nine Buys assigned in the past three months. The average Clearwater Analytics’ stock price target of $29.88 per share implies a 34.3% upside potential.
Year-to-date, CWAN stock has declined by 19%.
