Stock Market Today, Dec. 22: Clearwater Analytics Surges on $8.4 Billion Take-Private Deal

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.

How the markets moved today

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.

What this means for investors

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.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends BlackLine. The Motley Fool has a disclosure policy.