Company: CWAN
Filing Date: 2025-03-06
Form Type: S-4/A
Source: 0001193125-25-048570
Chunk: 20

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-03-06
Form: S-4/A
Chunk 20
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 are conditioned upon delivery of the
Opinions.

Each of Clearwater and Enfusion have covenanted in the Merger Agreement to use commercially reasonable efforts to obtain the
Opinions. In addition, the Merger Agreement provides that none of Clearwater, Acquirer, Merger Sub or Merger Sub II shall take any action or fail to take any action that would reasonably be expected to cause the Corporate Mergers, taken together, to
fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code.

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 U.S. Department of 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 (as defined in the section titled “The Transactions—Material U.S. Federal Income Tax Consequences of the Corporate Mergers”) 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 in connection with 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