Clearwater Analytics is exploring a sale that could value the private equity-owned investment management software firm at around $2 billion, including debt, according to people familiar with the matter.
Welsh, Carson, Anderson & Stowe, the buyout firm which acquired its majority stake in the business in 2016 for an undisclosed amount, has hired an investment bank to review strategic options for Clearwater, according to two of the sources.
Clearwater currently generates around $200 million of revenue annually, according to three of the sources. Options being considered, beyond a sale, include an initial public offering or recapitalization to support its ongoing expansion in Europe and Asia, a separate source said.
The sources spoke on condition of anonymity as the information is not public. Welsh Carson and Clearwater did not respond to requests for comment.
Boise, Idaho-based Clearwater provides software that helps financial firms and other companies manage their investment portfolios, including accounting and reporting tasks.
Clients of Clearwater, which has offices in the United States, the United Kingdom and India, according to its website, include the international arm of Sompo Holdings, Cisco Systems Inc and Facebook Inc.
Technology platforms which aid firms in automating and streamlining processes, known as software-as-a-service (SaaS), are considered attractive investments as businesses seek increased efficiency and lower costs.
Notable fintech SaaS deals so far this year include Plaid’s $5.3 billion sale to Visa Inc and Social Finance Inc’s (SoFi’s) $1.2 billion acquisition of payments software company Galileo Financial Technologies.