US Markets

Software firm Clearwater Analytics explores $2 billion sale -sources

Clearwater Analytics is exploring a sale that could value the private equity-owned investment management software firm at around $2 billion, including debt, according to people familiar with the matter.

By David French and Krystal Hu

NEW YORK, Aug 4 (Reuters) - Clearwater Analytics is exploring a sale that could value the private equity-owned investment management software firm at around $2 billion, including debt, according to people familiar with the matter.

Welsh, Carson, Anderson & Stowe, the buyout firm which acquired its majority stake in the business in 2016 for an undisclosed amount, has hired an investment bank to run an auction for Clearwater, according to two of the sources.

Clearwater currently generates around $200 million of revenue annually, according to three of the sources.

The sources spoke on condition of anonymity as the information isn't public. Welsh Carson and Clearwater didn't respond to requests for comments.

Boise, Idaho-based Clearwater provides software which assists financial firms and other companies to manage their investment portfolios, including accounting and reporting tasks.

Its clients include the international arm of Sompo Holdings 8630.T, Cisco Systems Inc CSCO.O and Facebook Inc FB.O, with offices in the United States, the United Kingdom and India, according to its website.

Technology platforms which aid firms in automating and streamlining processes, known as software-as-a-service (SaaS), are considered attractive investments as businesses seek increased efficiency and lower costs.

Notable fintech SaaS deals so far this year include Plaid's $5.3 billion sale to Visa Inc V.N and Social Finance Inc's (SoFi's) $1.2 billion acquisition of payments software company Galileo Financial Technologies.

(Reporting by David French and Krystal Hu in New York Editing by Nick Zieminski)

((davidj.french@thomsonreuters.com; +1 646 223 5211; Reuters Messaging: davidj.french.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CSCO FB V

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More