Permira, Warburg Pincus To Acquire Clearwater Analytics For $8.4 Billion

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.

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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.