Clearwater Analytics (NYSE: CWAN) has announced its acquisition of Enfusion (NYSE: ENFN), a move that will establish a comprehensive, front-to-back, cloud-native investment management platform. This strategic combination enhances workflow automation, data connectivity, and operational efficiency for institutional investors, asset managers, and hedge funds.
The $1.5 billion deal, structured as a mix of cash and stock, marks a significant expansion of Clearwater’s capabilities. By integrating Enfusion’s industry-leading front-office technology—including portfolio and order management—with Clearwater’s back-office accounting, compliance, and reporting solutions, the combined platform eliminates the inefficiencies of fragmented legacy systems.
“This acquisition is about seamless data management from the front office to the back office,” said Sandeep Sahai, CEO of Clearwater Analytics. “By bringing together two innovative platforms, we unlock powerful network effects that amplify client value.”
Clients will benefit from:
Unified workflows that reduce manual reconciliation and operational risk.
Faster, AI-driven automation for accounting, reporting, and portfolio oversight.
A cloud-native infrastructure ensuring real-time data access, scalability, and efficiency.
The deal also strengthens Clearwater’s position in asset management and hedge funds, two high-growth segments where Enfusion has gained strong market traction. Additionally, Enfusion’s international footprint—generating 38% of its revenue from Europe and Asia—accelerates Clearwater’s global expansion strategy.
The acquisition increases Clearwater’s total addressable market (TAM) by $1.9 billion and is expected to drive strong revenue growth, particularly as Clearwater expands its revenue per client from 1 to 4 basis points (bps).
By leveraging Clearwater’s operational scale and AI-driven efficiency, the combined company anticipates:
$20 million in cost synergies within the first 2.5 years.
Significant EBITDA margin expansion, with a 400 bps increase in Year 1 and an additional 400 bps in Year 2.
This acquisition is more than just a business combination—it represents a fundamental shift in investment management technology. The fragmented, multi-vendor approach that has dominated the industry is giving way to a truly integrated, end-to-end cloud-native solution.
With this move, Clearwater and Enfusion are not just expanding market share—they are reshaping the future of investment management technology.
Congratulations to the teams at Clearwater Analytics and Enfusion on this exciting milestone.
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