Company: CWAN
Filing Date: 2025-03-20
Form Type: 424B3
Source: 0001193125-25-058975
Chunk: 168

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-03-20
Form: 424B3
Chunk 168
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 a U.S. Holder generally will recognize gain or loss in an amount equal to the difference, if any, between (i) the sum of the fair market value of any Clearwater Common Stock and any cash Merger
Consideration (including any cash received in lieu of fractional shares of Clearwater Common Stock) received in the Merger and (ii) such U.S. Holder’s adjusted tax basis in its shares of Enfusion Common Stock exchanged in the Merger. Gain
or loss must be calculated separately for each block of shares of Enfusion Common Stock exchanged by such U.S. Holder if such blocks were acquired at different times or for different prices. Any gain or loss generally will be capital gain or loss
and will be long-term capital gain or loss if the holding period in a particular block of shares of Enfusion Common Stock exchanged in the Merger is greater than one year as of the effective date of the Merger. Long-term capital gains of certain non-corporate holders, including individuals, generally are taxed at preferential rates. The deductibility of capital losses is subject to certain limitations. A U.S. Holder’s holding period in shares of
Clearwater Common Stock received in the Merger would begin on the day following the Merger.

Receipt of cash in lieu of fractional shares

A U.S. Holder of shares of Enfusion Common Stock that receives cash in lieu of a fractional share of Clearwater Common Stock
generally should be treated as having received such fractional share pursuant to the Merger and then as having sold such fractional share to Clearwater for cash. As a result, and subject to the discussion below under “—Possible dividend
treatment,” such U.S. Holder generally will recognize gain or loss equal to the difference, if any, between the amount of cash received for such fractional share and the tax basis allocated to such fractional share (determined as described
above). Such gain or loss generally will be long-term capital gain or loss if, as of the effective date of the Merger, the U.S. Holder’s holding period for such fractional share (determined as described above) is more than one year. Long-term
capital gains of certain non-corporate holders, including individuals, generally are taxed at preferential rates. The deductibility of capital losses is subject to certain limitations.

Possible dividend treatment

In some cases, if a holder of Enfusion Common Stock actually or constructively owns a sufficient amount of Enfusion Common Stock or Clearwater
Common Stock either before or after the