By Milana Vinn NEW YORK, Dec 21 (Reuters) – A group of private equity firms led by Permira and Warburg Pincus has clinched a deal to acquire investment and accounting software maker Clearwater Analytics Holdings for about $8.4 billion, including debt, sources familiar with the matter said. Permira and Warburg Pincus have agreed to take Clearwater private for $24.55 a share, reclaiming ownership of the asset they jointly owned nearly five years ago before taking the company public through an IPO, the sources said. The deal is expected to value the company at between $8.3 billion and $8.4 billion, the sources said. The deal, which was signed late on Saturday and is expected to be announced on Monday, includes the participation of several minority investors, including Francisco Partners and Temasek, said the sources, who requested anonymity due to the sensitivity of the matter. Permira and Warburg Pincus declined to comment, while Clearwater, Francisco Partners and Temasek did not immediately respond to Reuters' requests for comment. Earlier on Sunday, Bloomberg News reported that Permira and Warburg Pincus were nearing a deal to acquire Clearwater. AI CAPABILITIES Based in Boise, Idaho, Clearwater makes software that helps companies manage their investment portfolios. The company operates a single, multi-tenant cloud platform that aggregates portfolio data and performs complex accounting and analytics in one place. That structure allows for integration of AI-driven tools to generate more precise, on-demand insights into their portfolios, improving reporting and client service. While some investors may view advances in AI as a potential threat to the business, a source familiar with the deal said the opportunity to deepen Clearwater's AI capabilities and expand the value of its platform was a key reason the take-private transaction was attractive. The deal price of $24.55 per share represents nearly a 40% premium on Clearwater's share price of $16.69 on November 10, before news reports of a potential sale. A source familiar with the matter told Reuters last month that Permira and Warburg Pincus had submitted a joint offer to purchase Clearwater, roughly four years after they helped the software maker get listed on the stock market. Last week, activist investor Starboard Value took a nearly 5% stake in Clearwater, betting that it was undervalued amid investor concerns over its integration of recent acquisitions. Clearwater, which went public in 2021 at a valuation of $5.5 billion, had a market capitalization of around $6.5 billion as of Sunday, according to LSEG data. Permira and Warburg Pincus remained majority owners of Clearwater through the 2021 IPO and reduced their stake over time, including by selling certain share classes. JP Morgan served as a financial advisor to the company, Goldman Sachs served as an advisor to the buyer group, and PJT Partners served as a financial advisor to the special committee, the sources said. JP Morgan declined to comment, while Goldman Sachs and PJT were not immediately available to comment. (Reporting by Milana Vinn in New York and Abu Sultan in Bengaluru; Editing by Gareth Jones, Chizu Nomiyama and Paul Simao)
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