Company: CWAN
Filing Date: 2025-02-11
Form Type: S-4
Source: 0001193125-25-023759
Chunk: 40

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-11
Form: S-4
Chunk 40
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20

For the Corporate Mergers to qualify as a “reorganization” under
Section 368(a) of the Code, certain requirements must be satisfied. These requirements include the “continuity of interest” requirement as described in the Treasury Regulations
Section 1.368-1(e). Under regulatory guidance, for the “continuity of interest” requirement to be satisfied, at least 40% (by value) of the aggregate total consideration received by Enfusion
Stockholders in the Merger must consist of Clearwater Common Stock. The value of Clearwater Common Stock received by Enfusion Stockholders as Merger Consideration will not be determined until the second to last trading day prior to (but not
including) the Closing Date. The “continuity of interest” requirement is expected to be satisfied unless the value of Clearwater Common Stock declines significantly from its value as of the last business day prior to the execution of the
Merger Agreement on January 10, 2025.

Assuming the Corporate Mergers, taken together, qualify as a “reorganization” under
Section 368(a) of the Code, a U.S. Holder generally will not recognize any gain or loss for U.S. federal income tax purposes upon the exchange of Enfusion Common Stock for shares of Clearwater Common Stock pursuant to the Merger, except, and to
the extent of, the cash Merger Consideration (and any cash in lieu of fractional shares of Clearwater Common Stock) received by such Enfusion Stockholder.

However, it is possible that the value of Clearwater Common Stock (determined on the second to last trading day prior to, but not including,
the Closing Date) will not be sufficient for the “continuity of interest” requirement to be satisfied. In that case, the Corporate Mergers would not qualify as a “reorganization” under Section 368(a) of the Code, and it is
not intended that the Second Merger is completed. Accordingly, the Merger would be completed, and the receipt of the Merger Consideration would be treated as a taxable transaction.

In addition, the U.S. federal income tax consequences to a U.S. Holder generally will depend on whether such U.S. Holder exchanges its shares
of Enfusion Common Stock solely for Clearwater Common Stock (i.e., Per Share Stock Consideration), solely for cash Merger Consideration (i.e., Per Share Cash Consideration) or for a combination of Clearwater Common Stock and cash Merger