Clearwater Analytics is set to go private in a deal valuing the investment accounting and analytics firm at approximately US$8.4 billion, following an agreement with private equity heavyweights Permira and Warburg Pincus, according to people familiar with the transaction.
The deal marks one of the largest technology-focused take-private transactions of the year and reflects sustained private equity appetite for profitable software companies with recurring revenue models, even amid tighter global financial conditions.
Under the terms of the agreement, Permira and Warburg Pincus will acquire all outstanding shares of Clearwater Analytics, taking the company off public markets. The transaction is expected to be funded through a combination of equity contributions from the buyers and debt financing, though detailed financial terms have not been publicly disclosed.
Founded in 2004 and headquartered in Boise, Idaho, Clearwater Analytics provides cloud-based investment accounting, reporting, and analytics solutions to asset managers, insurers, corporations, and public-sector institutions. The company has built a strong reputation for servicing complex investment portfolios, benefiting from long-term client contracts and high switching costs.
Market analysts say Clearwater’s predictable cash flows and expanding global client base made it an attractive target for private equity firms seeking defensive growth assets. Going private is expected to give the company greater flexibility to pursue long-term investments, product development, and potential acquisitions without the pressure of quarterly earnings scrutiny.
The transaction also underscores a broader trend of public software companies opting for take-private deals as valuations remain below peak levels seen during the post-pandemic market surge. Private equity firms, flush with capital, have increasingly moved to capitalise on this valuation gap.
Clearwater Analytics’ board has reportedly approved the deal, which is subject to customary regulatory approvals and closing conditions. The transaction is expected to close in 2026.
Once completed, the company will operate as a privately held entity under the ownership of Permira and Warburg Pincus, both of which have extensive portfolios in technology, financial services, and data-driven platforms.
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