Enfusion, a US-based provider of financial software for asset managers, is in discussions with investment bankers to explore strategic options, including a potential sale, with operate equity firms among the interested parties, according to a report by Reuters.
The report cites unnamed sources familiar with the situation as revealing that the Chicago-based company, valued at $1.1bn, recently initiated talks with investment banks following interest from potential buyers.
Although Enfusion has not formally initiated a sale process, it is considering its options, with the possibility of remaining independent still on the table, the sources noted. The company has yet to comment on the developments.
Shares of Enfusion surged as much as 19% on the news before trading was temporarily halted on Friday.
This isn’t the first time Enfusion has explored deal opportunities with the company last year attracting acquisition interest from several suitors, including Francisco Partners, Vista Equity Partners, and Irenic Capital Management.
Enfusion, which provides cloud-based portfolio management and risk management systems to hedge funds and investment funds, went public in 2021, but its stock has lost more than 50% of its value since the IPO. Until Thursday’s close, the company’s shares were down 12% this year, lagging behind the S&P 500 Application Software index, which has remained relatively stable.
In its most recent quarter, Enfusion reported a 16% year-on-year revenue increase, reaching $49.5m, but short of market expectations.
Currently, investment firms FTV Management Company and ICONIQ Capital together hold around 50% of Enfusion’s shares.
