Acquisition to Fuel Clearwater's European
Expansion and Enable Path to Complete Cloud-Based Front-to-Back
Investment Lifecyle Solution
BOISE,
Idaho, Sept. 29, 2022 /PRNewswire/
-- Clearwater Analytics Holdings, Inc. (NYSE: CWAN), a leading
provider of SaaS-based investment accounting, reporting, and
analytics solutions, today announced that it has entered into an
agreement that will lead to the acquisition of Paris, France-based JUMP Technology. This
transaction will vastly expand Clearwater Analytics' capabilities
in investment management and operations with a complete
front-to-back solution. Clearwater
expects the acquisition to close within the next two months.
JUMP Technology, whose clients include market leaders Rothschild
& Co Asset Management, Groupama, Groupe VYV, APICIL Asset
Management, and Moneta Asset Management, has developed an
innovative, modular, technology platform that is dedicated to the
investment management industry spanning investment managers, hedge
funds, private banks, family offices, insurers, and institutional
investors.
The JUMP solution covers the entire investment management value
chain, for a broad range of financial instruments, in a single
software platform combining Data Management, Front-Middle-Back
office, and reporting capabilities. JUMP's modular approach allows
clients to use a specific solution for a particular business need —
PMS, OMS, Performance Attribution, NAV, Unit Linked Funds,
Reporting or for the entire Front-to-Back value chain.
The acquisition will allow Clearwater to offer an innovative, end-to-end
platform for the hedge fund and investment management industry.
Combined with Clearwater Prism, it will provide an enterprise-class
solution for investment managers of all sizes.
The modular nature of the JUMP platform will allow current
clients and prospects of Clearwater to utilize advanced performance and
attribution capabilities and best-in-class front-office modules
that will integrate with the Clearwater platform, while clients in
Europe will get full end-to-end
capabilities for unit linked funds.
"This acquisition furthers Clearwater's journey to become a multi-product
company, gives us immediate scale in Europe, and expands our offering to cover the
entire investment lifecycle," said Sandeep
Sahai, CEO at Clearwater Analytics. "I have had the pleasure
of getting to know JUMP founder Emmanuel
Fougeras and his team and their commitment to innovation and
building the best platform for their clients is extraordinary. We
look forward to welcoming JUMP's employees and clients to the
Clearwater family, and together,
building an industry-disrupting leadership position in the
market."
"We are delighted to join the Clearwater family and combine our world-class
technology with a global go-to-market engine," said Emmanuel Fougeras, Founder and CEO at JUMP
Technology. "Clearwater shares our
passion for building innovative technologies that enrich the client
experience and enables asset managers and insurers to grow
confidently. I can't think of a better place for our team to
continue our mission and make JUMP's technology available to a
global customer base." Emmanuel
Fougeras will continue to lead the JUMP technology team
following the acquisition.
The terms of a customary French put and exclusivity agreement
will lead to the purchase of JUMP Technology for 75 million euros, with employees and owners to
receive up to 3.8 million restricted stock units in Clearwater to be earned over four years from
their grant date. The acquisition will add 100 employees serving 70
customers across Europe. JUMP
Technology earned 12.1 million euros
in revenue in 2021 on an IFRS basis. The transaction is expected to
close in the fourth quarter of 2022, subject to completion of
French regulatory requirements and other closing conditions. Given
the timing of closing, the transaction is currently expected to
have a de minimis impact on Clearwater Analytics' revenues in Q4
2022.
Clearwater Analytics will host a conference call on September 29, 2022, at 5:00 p.m. ET through a live webcast available on
the Company's investor relations website. Participants must
visit investors.clearwateranalytics.com to listen to this
live webcast. A replay of the webcast will be available on the
Company's investor relations website.
About JUMP Technology
JUMP Technology is a software company that is 100% dedicated to
the investment management industry: investment management
companies, private banks, family offices, insurers, and
institutional investors. While customized for each industry group,
the JUMP solution covers the entire investment management value
chain, across a broad range of financial instruments, in a single
software platform combining data management, Front-Middle-Back
office, and reporting capabilities. Its modular approach allows you
to use the solution for a particular business need (PMS, OMS,
Reporting, Data Management, Performance Attribution, NAV,
Compliance, Accounting, etc.) or for the entire Front-to-Back value
chain.
JUMP Technology is present in France and other countries in Europe. Its platform can be deployed
on-premises or in the cloud and is suitable for industry players of
any size.
About Clearwater Analytics
Clearwater Analytics is a global industry-leading SaaS solution
for automated investment data aggregation, reconciliation,
accounting, compliance, risk, performance, and reporting. Each
day, the Clearwater solution
reports on more than $5.9 trillion in
assets for clients that include leading insurers, asset managers,
corporations, pension plans, governments, and nonprofit
organizations – helping them make the most of their investment
portfolio data with a world-class product and client-centric
servicing. Investment professionals around the globe trust
Clearwater to deliver timely,
validated investment data and analytics. Additional information
about Clearwater can be found
at clearwateranalytics.com, LinkedIn, and Twitter.
Use of 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 Company's and JUMP Technology's
possible or assumed future results of operations, 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," "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 Analytics' control, that may cause the Company's and
JUMP Technology'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 may cause actual results
to differ materially from Clearwater Analytics' current
expectations and include, but are not limited to, the Company's
ability to successfully integrate the operations and technology of
JUMP Technology with those of the Company, retain and incentivize
the management of JUMP Technology following the close of the
acquisition, retain the clients of JUMP Technology and successfully
close the acquisition of JUMP Technology, as well as other risks
and uncertainties detailed in Clearwater Analytics' periodic public
filings with the SEC, including but not limited to those discussed
under "Risk Factors" in the Company's Annual Report on Form 10-K
for the year ended December 31, 2021
filed on March 16, 2022, and in other
periodic reports filed by Clearwater Analytics with the SEC. These
filings are available at www.sec.gov and on Clearwater
Analytics' 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 Analytics' expectations or beliefs as of any date
subsequent to the time they are made. Clearwater Analytics 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 Analytics.
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SOURCE Clearwater Analytics, LLC