Clearwater Analytics (NYSE:CWAN) shares closed Monday’s session at $24.06, up 8.13%. The SaaS solutions provider for investment data aggregation, reconciliation, accounting, and reporting rose on overnight news of a take-private deal.
The company said it had entered a definitive agreement to be acquired by a group of private equity firms led by Permira and Warburg Pincus in an $8.4 billion all-cash deal. Clearwater Analytics IPO'ed in 2021 and has fallen 5% since going public. Monday's trading volume reached 91.1 million shares, coming in almost 1,500% above its three-month average of 5.8 million shares.
The S&P 500 (SNPINDEX:^GSPC) added 0.64% to finish at 6,878, while the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 0.52% to 23,429. Within application software, industry peer BlackLine (NASDAQ:BL) gained 0.86% to $58.34, as investors in software platforms continue to track private‑equity interest and M&A valuations across the group.
Clearwater's board of directors announced yesterday that it had approved the merger agreement, subject to stockholder and regulatory approval. The deal would give shareholders $24.55 per share, a slight increase on today's price of $24.06.
Halper Sadeh LLC, an investor rights law firm, is investigating whether the deal is fair to shareholders. This -- along with moves from activist investors -- may delay the process. Investors will now be watching how the buyout timeline and regulatory review unfold.
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Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends BlackLine. The Motley Fool has a disclosure policy.