Partnership to Benefit Clients of Both Companies
and Dramatically Enhance Offering for the Risk and Performance
Needs of Front and Middle Office Clients
BOISE,
Idaho and SANTA MONICA,
Calif., April 2, 2024 /PRNewswire/ -- Clearwater Analytics (NYSE: CWAN), a leading
provider of SaaS-based investment management, accounting,
reporting, and analytics solutions, today 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
AxiomSM, Wilshire
AtlasSM, 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.
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 new Clearwater Wilshire Analytics platform will help clients
calculate performance and risk attribution, assist with
security-level portfolio construction, uncover new strategies,
access high-quality portfolio models, and identify investment
opportunities that maximize returns and mitigate risk. As a result,
investment teams will be able to significantly improve client
satisfaction and drive faster growth of assets under management
compared to the market.
Wilshire's industry-leading analytics have a long history of
excellence and adoption from clients worldwide. These highly
sophisticated, widely adopted and proven models have
helped clients strengthen their portfolios across various
market conditions and have stood the test of time.
Clearwater expects to invest in
building out a modern front-end, broaden coverage of asset classes,
and enhance Wilshire's current offerings with the capabilities of
its own platform, helping to make Clearwater a leading provider of comprehensive
and powerful risk and performance solutions, and benefiting clients
of both organizations. Wilshire will continue to focus its
strategic growth on its core retirement and wealth, alternatives,
and institutional business lines. Following the close, Wilshire
will continue to have access to the analytics software to support
its clients.
"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.
About Wilshire
Wilshire is a leading global financial services firm and trusted
partner to a diverse range of approximately 500 leading
institutional investors and financial intermediaries. Our clients
rely on us to improve investment outcomes for a better future.
Wilshire advises on over $1.3
trillion in assets and manages over $100 billion in assets as of December 31, 2023. Wilshire is headquartered in
the United States with offices
worldwide. More information on Wilshire can be found at
www.wilshire.com.
About Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a global, industry-leading
SaaS solution, automates the entire investment lifecycle. With a
single instance, multi-tenant architecture, Clearwater offers award-winning investment
portfolio planning, performance reporting, data aggregation,
reconciliation, accounting, compliance, risk, and order management.
Each day, leading insurers, asset managers, corporations, and
governments use Clearwater's
trusted data to drive efficient, scalable investing on more than
$7.3 trillion in assets spanning
traditional and alternative asset types. Additional information
about Clearwater can be found
at clearwateranalytics.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's beliefs and assumptions and on information
currently available to management. Forward-looking statements
include information concerning the following factors in reference
to Clearwater and/or the assets to
be acquired: possible or assumed future results of operations,
possible or assumed performance, business strategies, technology
developments, financing and investment plans, dividend policy,
competitive position, industry, economic and regulatory
environment, potential growth opportunities and the effects of
competition. Forward-looking statements include statements that are
not historical facts and can be identified by terms such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"aim," "may," "plan," "potential," "predict," "project," "seek,"
"should," "will," "would" or similar expressions and the negatives
of those terms, but are not the exclusive means of identifying such
statements.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors, many of which are beyond
Clearwater's control, that may
cause Clearwater's actual results,
performance, or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. These risks and uncertainties
include, but are not limited to, Clearwater's ability to successfully integrate
the operations and technology of the assets to be
acquired with those of Clearwater, retain and incentivize the
employees related to the assets to be acquired following the close
of the acquisition, retain the clients to be acquired and
successfully close the acquisition of the assets to be acquired, as
well as other risks and uncertainties discussed under "Risk
Factors" in Clearwater's Annual
Report on Form 10-K for the year ended December 31, 2023 filed with the US Securities
and Exchange Commission (the "SEC") on February 29, 2024, and in other periodic reports
filed by Clearwater with the SEC.
These filings are available at www.sec.gov and on Clearwater's website. Given these
uncertainties, you should not place undue reliance on
forward-looking statements. Also, forward-looking statements
represent management's beliefs and assumptions only as of the date
of this press release and should not be relied upon as representing
Clearwater's expectations or
beliefs as of any date subsequent to the time they are made.
Clearwater does not undertake to
and specifically declines any obligation to update any
forward-looking statements that may be made from time to time by or
on behalf of Clearwater.
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SOURCE Clearwater Analytics