Clearwater Analytics, a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions, announced that it has entered into a definitive agreement to acquire risk and performance analytics solutions from Wilshire Advisors LLC, a leading global financial services firm.
Specifically, Clearwater will acquire Wilshire Axiom, Wilshire Atlas, Wilshire Abacus, and Wilshire iQComposite, which provide fixed income analytics, equity analytics and performance measurement, accounting, and GIPS compliance support analytics, respectively, and will merge them with its own risk and performance analytics platform to create a powerful and compelling product for its customers, as per the company’s statement.
The partnership, which will be co-branded as Clearwater Wilshire Analytics, will allow both companies to provide enhanced analytical capabilities for investment managers and institutional asset owners such as public pension plans, insurers, foundations, endowments and more. Partnering with Wilshire, Clearwater will be able to deepen and strengthen its position in the institutional asset owner market. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions.
“The strategic acquisition of Wilshire’s AxiomSM, AtlasSM, Abacus, and iQComposite products marks a significant milestone for Clearwater, positioning us to supercharge our clients’ risk and performance capabilities across their front and middle office functions, while perfectly aligning with the long-term needs of our clients across the entire investment lifecycle,” said Sandeep Sahai, CEO at Clearwater Analytics. “Wilshire’s powerful IP in combination with Clearwater’s comprehensive, trusted foundational platform delivers tremendous benefits to our clients and sets a new standard in the industry. Together, we’re incredibly excited to expand into high-growth markets with a best-in-class investment management solution that will accelerate the way our clients grow their business.”
“Our team has built a robust, time-tested suite of solutions that delivers actionable insights and continues to represent the gold standard in the industry,” said Andy Stewart, CEO at Wilshire. “Clearwater is the ideal steward to expand the business, invest in these capabilities, and accelerate the growth of these analytic tools to serve a wide range of clients.”
“This collaboration was made possible by the contributions, expertise and passion of our analytics team,” said Jason Schwarz, Deputy CEO at Wilshire. “The combined Clearwater Wilshire Analytics platform will help improve investment outcomes for existing clients as well as reach potential new clients in markets that have historically not had access to our capabilities.”
Clearwater expects to pay roughly $40 million for Wilshire’s assets while adding approximately $7 million in annualized revenue.
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