Acquisition to Fuel Clearwater’s European Expansion and Enable Path to Complete Cloud-Based Front-to-Back Investment Lifecyle Solution
BOISE, Idaho, September 29, 2022 – 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.