Clearlake explores $3 billion-plus sale of software provider Confluence, sources say

By Thomson Reuters Jun 5, 2024 | 11:02 AM

By Milana Vinn and David French

(Reuters) – Private equity firm Clearlake Capital is exploring a sale of Confluence Technologies, hoping a deal will value the financial software and data management provider at more than $3 billion, including debt, according to four people with knowledge of the matter.

Clearlake is working with investment banks Morgan Stanley and Centerview Partners on the sale process for Confluence, said the sources.

The sources cautioned a sale was not guaranteed and spoke on condition of anonymity as the discussions are confidential.

Clearlake Capital and Centerview Partners declined to comment. Morgan Stanley and Confluence did not immediately respond to requests for comment.

Confluence is a global software and data management provider for asset managers, which helps automate business processes. The company has more than 900 employees in 15 offices globally and services over 1,000 clients in more than 40 countries, according to its website.

The Pittsburgh, Pennsylvania-based company was founded in 1991 by Mark Evans, who still remains the company’s chief executive officer.

Clearlake acquired its majority stake in Confluence in 2021 from TA Associates, which itself first invested in Confluence in 2018.

Soon after Clearlake took control, Confluence bought software provider Investment Metrics for $500 million, and acquired Compliance Solutions Strategies, which focuses on helping financial companies with regulatory reporting requirements.

The additions have helped boost Confluence’s earnings. If the company is sold for around $3 billion, this would be roughly 10 times the company’s annual revenue, the sources said.

(Reporting by Milana Vinn and David French in New York;Editing by Elaine Hardcastle)