Enfusion, a financial software provider for asset managers, is exploring strategic options, including a potential sale, according to sources familiar with the matter. The Chicago-based company, valued at $1.1 billion, has engaged investment bankers to evaluate various possibilities following interest from private equity firms.
Although no formal sale process has commenced, the company is considering its future after discussions with potential suitors. Enfusion did not respond to requests for comment.
Following the news, Enfusion’s shares surged nearly 19% before a temporary trading halt. This isn’t the first instance of acquisition discussions; the company previously attracted interest from firms like Francisco Partners and Vista Equity Partners.
Primarily serving hedge funds, Enfusion provides cloud-based portfolio management and risk systems. The company has faced challenges in expanding its client base and capturing a larger share of existing customer revenues.
Since its IPO in 2021, Enfusion’s stock has declined over 50%, underperforming the S&P 500 Application Software index amid concerns regarding customer spending cuts. In its latest quarter, the company reported 16% year-on-year revenue growth, totaling $49.5 million, but fell short of market expectations.
Investment firms FTV Management and ICONIQ Capital hold approximately 50% of Enfusion’s shares. Earlier this year, Spruce Point Management raised concerns about the company’s financial quality, taking a short position based on fears of potential revenue misstatements.
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