Clearwater Analytics, a company that develops accounting, compliance, and risk reporting tools for asset managers, SAYS on Monday it entered into a definitive agreement to acquire investment management platform Enfusion for $1.5 billion.

Clearwater, which said it secured an $800 million loan to finance the transaction, along with a $200 million revolving line of credit, will allow Enfusion shareholders to elect to receive cash, stock, or a mixture. Clearwater expects to pay $760 million in cash, and issue between approximately 23 million and 28 million new shares to Enfusion shareholders.

The boards of both companies agreed to the terms. If approved by Enfusion’s shareholders and regulators, Clearwater expects the deal to close in Q2 2025.

Enfusion, based in Chicago, was founded in 1997 as a technology and operations consulting firm. After noticing a gap in the market for a portfolio management system, Enfusion’s management partners focused their efforts on launching the company’s current investment tool.

Enfusion has raised tens of millions of dollars in venture capital from investors, including ICONIQ Growth and FTV Capital, which owns 45% of the company along with Enfusion’s CEO, Oleg Movchan. After going public in 2021, Enfusion appreciated at $1.9 billion.

Clearwater said its purchase, for which it paid a 13% premium to Enfusion’s stock price on Jan. 10, was a smart one, pointing to Enfusion’s encouraging financials. Enfusion reported preliminary ~15% year-over-year revenue growth in 2024 to ~$201 million, and preliminary ~13% year-over-year growth in annual recurring revenue to ~$210 million .

Clearwater also sees Enfusion as a way to build a “front-to-back platform for the entire investment management industry.” In a press releaseClearwater said it plans to integrate Enfusion’s portfolio and order management technology into its offerings while expanding into the hedge fund industry and geographies where Enfusion already has a presence.

Clearwater, which launched in 2004, claims to have more than $7.4 trillion in assets on its platform. Notable customers include JP Morgan Asset Management, Facebook, Cisco, and Oracle.