Clearwater Analytics is set to acquire the risk and performance assets of Wilshire Advisors in a deal valued at $40 million, with plans to merge the products with its own platform.
Sandeep Sahai
Specifically, Wilshire AxiomSM, Wilshire AtlasSM, Wilshire Abacus, and Wilshire iQComposite are being acquired. The offerings cover: fixed income analytics, equity analytics, performance measurement, accounting and compliance support analytics.
The transaction is expected to close later this quarter subject to closing conditions, with the partnership to be co-branded as Clearwater Wilshire Analytics.
Sandeep Sahai, chief executive of Clearwater Analytics, highlighted the strategic importance of the deal: “[…] marks a significant milestone for Clearwater, positioning us to supercharge our clients’ risk and performance capabilities across their front and middle office functions, while perfectly aligning with the long-term needs of our clients across the entire investment lifecycle.
“Wilshire’s powerful IP in combination with Clearwater’s comprehensive, trusted foundational platform delivers tremendous benefits to our clients and sets a new standard in the industry.”
Benefits of the Clearwater Wilshire Analytics for clients include calculating performance and risk attribution, uncovering new strategies, and identifying investment opportunities that maximise returns and mitigate risk.
Going forward, Clearwater is planning to focus on building out a modern front-end, as well as broadening the coverage of asset classes. In addition, following completion of the deal, it has been confirmed that Wilshire will continue to have access to the analytics software for use by its own clients.
Andy Stewart, chief executive of Wilshire, said: ” Clearwater is the ideal steward to expand the business, invest in these capabilities, and accelerate the growth of these analytic tools to serve a wide range of clients.”