Clearwater Analytics and Enfusion: A New Era in Investment Management

Clearwater Analytics (NYSE: CWAN) and Enfusion, Inc. (NYSE: ENFN) have announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) for their proposed acquisition of Enfusion. This significant milestone brings the two leading software-as-a-service (SaaS) providers in the investment management industry one step closer to creating a unified, cloud-native front-to-back platform for institutional investors.



The acquisition, valued at approximately $1.5 billion, is expected to close in the second quarter of 2025, subject to customary closing conditions, including the receipt of Enfusion shareholder approval. This strategic move aims to accelerate growth, enhance the right to win in the asset management industry, and expand into the hedge fund sector.

Clearwater Analytics, a global leader in SaaS solutions for investment management, accounting, reporting, and analytics, will integrate Enfusion's front-office capabilities, including investment book of record (IBOR), portfolio, and order management, with its own middle and back-office solutions and client reporting capabilities. This integration will enable a seamless, cloud-native platform that integrates with other technologies, avoiding error-prone data handoffs and reducing reconciliation issues.

The acquisition also presents significant synergy opportunities, including increased right-to-win, higher back-to-base sales, greater presence across key geographies, and increased Total Addressable Market (TAM). Clearwater believes it will help accelerate Enfusion's growth based on these factors and expects to drive meaningfully improved unit economics at Enfusion while also growing its emerging managed services business.



Clearwater's robust execution infrastructure across New Delhi, Edinburgh, and Boise will enable it to run effectively and at scale, realizing significant cost savings and efficiency improvements. The company expects to reduce total and management fees by 20% and increase Enfusion's adjusted EBITDA margin by 400 basis points (bps) in the first year after the acquisition.

The acquisition positions Clearwater to expand into the hedge fund industry, with Enfusion's outstanding track record and wide acceptance as the leading end-to-end platform for hedge funds and liquid alternatives. This expansion is expected to increase the company's TAM by $1.9 billion.

Enfusion's strong international presence, with 38% of its revenue generated in Europe and Asia, is expected to accelerate Clearwater's global adoption strategy. Having a significantly higher presence across these geographies will strengthen Clearwater's ability to expand internationally.

In conclusion, the expiration of the HSR Act waiting period marks a significant step forward in the acquisition of Enfusion by Clearwater Analytics. This strategic move is expected to create a new era in investment management, offering institutional investors a unified, cloud-native front-to-back platform that drives growth, enhances the right to win, and expands into new markets. As the acquisition progresses, investors can look forward to the benefits that this powerful combination of innovative software leaders will bring to the industry.