Company: CWAN
Filing Date: 2025-03-06
Form Type: S-4/A
Source: 0001193125-25-048570
Chunk: 168

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-03-06
Form: S-4/A
Chunk 168
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 no assurance that the IRS would not assert, or that a court would not sustain, a
position contrary to any of the conclusions set forth herein.

In order for the Corporate Mergers to qualify as a
“reorganization” under Section 368(a) of the Code, certain requirements, including the “continuity of interest” requirement as described in Treasury Regulations
Section 1.368-1(e), must be satisfied. 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.

Because the value of the Merger Consideration is based in part on the value
of Clearwater Common Stock during the ten-trading day perioding ending on (and including) the second to last trading day prior to (but not including) the Closing Date, the Corporate Mergers, taken together,
could fail to meet the “continuity of interest” requirement, and therefore fail to qualify as a “reorganization” under Section 368(a) of the Code, if the value of all Clearwater Common Stock received by holders of Enfusion
Common Stock in the Merger represents less than 40% of the total value of the Merger Consideration received by holders of Enfusion Common Stock in the Merger (i.e., as a result in a decline in the value of Clearwater Common Stock). There are
therefore factual uncertainties concerning the qualification of the Corporate Mergers, taken together, as a “reorganization” under Section 368(a) of the Code as of the date of this Proxy Statement/Prospectus.

Tax consequences if the Corporate Mergers, taken together, qualify as a “reorganization”

Assuming that the Corporate Mergers, taken together, qualify as a “reorganization” under Section 368(a) of the Code, the
material U.S. federal income tax consequences of the Corporate Mergers to a U.S.