Clearwater Analytics Holdings, which provides cloud-native software for investment accounting and analytics, announced terms for its IPO on Tuesday.
The Boise, ID-based company plans to raise $450 million by offering 30 million shares at a price range of $14 to $16. New investor Wellington Management and insiders Dragoneer Investment Group and Durable Capital have indicated an interest in purchasing up to $150 million worth of shares in the offering (33% of the deal). At the midpoint of the proposed range, Clearwater Analytics Holdings would command a fully diluted market value of $3.7 billion.
Clearwater provides cloud-native software that allows clients to simplify their investment accounting operations. Its platform provides comprehensive accounting, data, and advanced analytics, as well as highly-configurable reporting for global investment assets daily or on-demand. The company serves more than 1,000 clients, and it has achieved an approximate 80% win rate for new clients over the prior four years in deals that reached the proposal stage. Clearwater has a 100% recurring revenue model, charging clients a fee primarily based on the amount of assets they manage on the Clearwater platform, subject to contracted minimums.
Clearwater Analytics Holdings was founded in 2004 and booked $226 million in revenue for the 12 months ended June 30, 2021. It plans to list on the NYSE under the symbol CWAN. Goldman Sachs, J.P. Morgan, Morgan Stanley, Credit Suisse, RBC Capital Markets, Wells Fargo Securities, Oppenheimer & Co., Piper Sandler, and William Blair are the joint bookrunners on the deal. It is expected to price during the week of September 20, 2021.
