Shares of Clearwater Analytics Holdings Inc. ( CWAN ) jumped 19.43% to $22.99 a piece in trading after the bell on Friday, following a report that Warburg Pincus and Permira are in talks to acquire the investment and accounting software maker.

A deal by the two private equity firms, which helped take Clearwater public in 2021, could come together within weeks, according to a report by Bloomberg on Friday that cites people familiar with the matter.

The purchase price being discussed couldn't immediately be learned, the report said.

Warburg Pincus, Permira, and Clearwater Analytics ( CWAN ) did not immediately respond to Benzinga’s requests for comment.

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Shares Get A Boost Amid Sale Talks

Clearwater shares are down over 30% so far this year, giving it a market cap of about $5.7 billion, according to data from Benzinga Pro.

The shares, which closed at $19.25 on Friday, jumped this week after another report from Bloomberg that said the company was working with advisers to solicit interest from prospective buyers.

Warburg and Permira invested in Clearwater in 2020. They were among the private equity backers the following year when Clearwater raised $621 million, including over-allotment shares, in an initial public offering (IPO).

Founded in 2004, Boise, Idaho-based Clearwater this month reported a 77% year-on-year increase in third-quarter revenue to $205.1 million and an 84% jump in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to about $71 million.

Benzinga’s Edge rankings paint a mixed picture for the stock, highlighting exceptional growth potential but significant weaknesses elsewhere. The Growth score stands out at a remarkably strong 99.53. However, Momentum and Value lag far behind at 11.70 and 0.02, respectively, suggesting limited recent performance strength and a valuation that may be difficult to justify. Price trend indicators show a bullish signal only in the short term, while medium- and long-term trends appear unfavorable.

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