Clearwater Analytics Acquires Risk Solutions from Wilshire Advisors

By Tamara Parker • Tuesday, April 02 15:14 • Permanent Link

Clearwater Analytics (NYSE: CWAN) has just announced a definitive agreement to acquire risk and performance analytics solutions from Wilshire Advisors LLC, a leading global financial services firm. This acquisition will see Clearwater acquiring Wilshire's Axiom, Atlas, Abacus, and IQComposite products, and merging them with its own risk and performance analytics platform to create a co-branded offering called Clearwater Wilshire Analytics. The partnership is aimed at providing enhanced analytical capabilities for investment managers and institutional asset owners, including public pension plans, insurers, foundations, endowments, and more.

The transaction, expected to close in the second quarter of 2024, is set to transform Clearwater's position in the institutional asset owner market. The new Clearwater Wilshire Analytics platform will empower investment teams to calculate performance and risk attribution, aid in security-level portfolio construction, access high-quality portfolio models, and identify investment opportunities to maximize returns and mitigate risk.

Following the acquisition, Clearwater expects to invest in building out a modern front-end, broadening coverage of asset classes, and enhancing Wilshire's current offerings with the capabilities of its own platform. As a result, Clearwater aims to become a leading provider of comprehensive risk and performance solutions.

The acquisition is expected to cost Clearwater approximately $40 million, while adding around $7 million in annualized revenue. Wilshire Advisors LLC is a trusted partner to approximately 500 leading institutional investors and financial intermediaries, advising on over $1.3 trillion in assets and managing over $100 billion in assets as of December 31, 2023. On the other hand, Clearwater Analytics, a global, industry-leading SaaS solution, automates the entire investment lifecycle, with leading insurers, asset managers, corporations, and governments using its trusted data to drive efficient, scalable investing on more than $7.3 trillion in assets spanning traditional and alternative asset types. As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $17.29. Check out the company's full 8-K submission here.

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