Is Clearwater Analytics (CWAN +7.61%) in play?
That was the hot speculation about the financial software specialist on Wednesday, after Bloomberg published a story on a potential takeover of the company. Its shares rose by almost 8% on hopes for a deal down the road, on a day when the S&P 500 (^GSPC +0.06%) could only muster a 0.1% improvement.
The Bloomberg boost
The popular financial news agency reported, in a story originally published following market close Tuesday and updated Wednesday morning, that Clearwater was attracting interest from potential buyers.
Image source: Getty Images.
Citing unnamed and unnumbered "people familiar with the matter," Bloomberg wrote that it has drafted advisors to help it consider options for its future. Those entities are also assisting it with soliciting interest from potential acquirers.
Clearwater was contacted for comment on the article, but it declined to say anything.
NYSE: CWAN
Key Data Points
Paying up for quality
If Clearwater is indeed on the block, the company will likely command a generous premium to its share price. It has shown significant revenue growth over recent years and quarters, and was well profitable not according to generally accepted accounting principles (GAAP) in its recently reported third quarter.
Although any potential takeover is likely priced into the stock now, as a juicy target it might have some upside left yet.
