An investor group led by Permira and Warburg Pincus has agreed to acquire Clearwater Analytics (CWAN) in a transaction valued at around $8.4bn.

Temasek is participating in the group, which also has significant support from Francisco Partners.

The agreement will see Clearwater Analytics’ shareholders receive $24.55 per share in cash.

Clearwater Analytics is currently listed on the New York Stock Exchange (NYSE).

The company has built a cloud-based investment management platform, which serves institutional investors in global public and private markets, supporting over $10tn in assets worldwide.

Clearwater Analytics offers a single integrated system that delivers portfolio management, trading, investment accounting, regulatory reporting, performance tracking, compliance, and risk analytics.

Its clients include insurers, asset managers, hedge funds, banks, corporations, and government entities.

Clearwater Analytics CEO Sandeep Sahai said: “This deal represents a great outcome for Clearwater Analytics and our stockholders.

“It also positions us well for our next chapter of growth. Operating as a private company will empower us to invest boldly as we integrate the platforms to deliver a next-generation front-to-back solution that natively addresses alternative assets, provides industry leading risk analytics, and delivers on agentic solutions powered by our unique and proprietary database.”

The special committee of Clearwater Analytics’ board of directors, made up entirely of independent and disinterested members, unanimously recommended the acquisition after consulting with independent legal and financial advisers.

The company’s board subsequently approved the transaction.

Completion of the deal is subject to approval from Clearwater Analytics’ shareholders, including a majority of votes cast by disinterested shareholders, as well as regulatory clearance and other customary conditions.

The parties expect the acquisition to close during the first half of 2026.

Warburg Pincus managing director Alex Stratoudakis said: “Clearwater Analytics continues to set the standard for excellence in the industry, and we are excited to invest behind the vision of creating an open, modular, front-to-back platform for institutional investment management.

“We’re excited to leverage our deep financial technology expertise and partner with Permira and the CWAN team to drive the next wave of innovation and growth for the company.”