Company: CWAN
Filing Date: 2025-03-06
Form Type: S-4/A
Source: 0001193125-25-048570
Chunk: 71

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-03-06
Form: S-4/A
Chunk 71
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. federal income taxes on the value of any Clearwater Common Stock received in the Merger.

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 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. However, it is possible that the value of Clearwater Common Stock (determined as of
such date) will not be sufficient for the “continuity of interest” requirement to be satisfied, in which case the Corporate Mergers would not qualify as a “reorganization,” in which case the Second Merger is not intended to be
completed, and the receipt of the Merger Consideration would be treated as a taxable transaction. Accordingly, Enfusion Stockholders that are U.S. Holders should be aware of the possibility that the Merger may not qualify as a
“reorganization” under Section 368(a) of the Code and that the Merger will be treated as a taxable transaction.

For a more
detailed description of the U.S. federal income tax consequences of the Corporate Mergers, see “The Transactions—Material U.S. Federal Income Tax Consequences of the Corporate Mergers.”

Other Risks of Clearwater and Enfusion

Clearwater’s and Enfusion’s businesses are and will be subject to the risks described above. In addition, Clearwater and Enfusion
are, and will continue to be, subject to the risks described in Clearwater’s Annual

41

Report for the fiscal year ended December 31, 2023 and Enfusion’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as
updated by subsequent Quarterly Reports on Form 10