Clearwater Analytics is set to acquire Enfusion, a SaaS provider for investment management and hedge funds, in a deal valued at approximately $1.5bn.

According to a recent press release, the purchase price of $11.25 per share will be paid through a near-equal mix of $760m in cash and 23–28 million newly issued Clearwater shares.

To finalise the acquisition, Clearwater will also pay $30m to terminate Enfusion’s tax receivable agreement (TRA).

Clearwater will fund the deal using an $800m Term Loan B, cash reserves, and a $200m revolving credit line, resulting in expected gross leverage of 3.7x adjusted pro forma EBITDA at closing.

The merger has received unanimous approval from Enfusion’s independent Special Committee and both companies’ boards. Enfusion shareholders affiliated with FTV, ICONIQ, and Mr. Movchan – holding 45% of Enfusion’s voting power – have pledged their support. Pending shareholder and regulatory approvals, the deal is expected to close in Q2 2025.

Enfusion projects 2024 revenue of $201–$202m, a 15–16% year-on-year increase, with ARR of $210–211m, up 13–14%.