Clearwater Analytics (CWAN) Stock Surges on Acquisition Rumors

Clearwater Analytics (CWAN) shares jumped after hours amid reports that Warburg Pincus and Permira are in talks to acquire the software company. Strong growth contrasts with valuation concerns.

Shares of Clearwater Analytics Holdings Inc.(NYSE: CWAN) leapt 19.43% to $22.99 an item in trading after the bell on Friday, adhering to a report that Warburg Pincus and Permira remain in talks to acquire the investment and accounting software program maker.

Acquisition Talks Spark Surge

A deal by the two private equity companies, which aided take Clearwater public in 2021, can collaborate within weeks, according to a record by Bloomberg on Friday that points out people aware of the matter.

Clearwater’s Financial Performance

Founded in 2004, Boise, Idaho-based Clearwater this month reported a 77% year-on-year increase in third-quarter profits to $205.1 million and an 84% enter adjusted earnings before rate of interest, taxes, devaluation, and amortization (EBITDA) to concerning $71 million.

Warburg and Permira purchased Clearwater in 2020. They were amongst the private equity backers the list below year when Clearwater raised $621 million, consisting of over-allotment shares, in a going public (IPO).

Benzinga’s Mixed Signals

Benzinga’s Side rankings paint a blended picture for the supply, highlighting extraordinary development possibility yet considerable weak points elsewhere. The Development score sticks out at an extremely solid 99.53. Nonetheless, Energy and Value lag much behind at 11.70 and 0.02, respectively, recommending limited current performance strength and a valuation that might be challenging to validate. Rate fad indications show a favorable signal only in the short term, while medium- and lasting fads appear undesirable.