US-based financial software provider Enfusion is in talks with investment bankers to evaluate strategic options including a potential sale of the company, reported Reuters.
The company, with a market value of $1.1bn, has been in contact with investment banks in recent weeks after receiving interest from potential acquirers, including private equity firms.
Enfusion’s shares jumped as much as 19% on the news before trading was briefly halted.
According to Reuter’s report, this is not the first time Enfusion has been in talks to explore strategic opportunities.
Last year, the company reportedly attracted interest from potential buyers, including Francisco Partners, Vista Equity Partners, and Irenic Capital Management, but no deal was finalised.
Established in 2006, Enfusion is a software-as-a-service (SaaS) company providing cloud-based financial software, primarily for hedge funds, asset managers, and institutional investors.
Its shares have been listed on the New York Stock Exchange following its 2021 initial public offering (IPO) and have lost more than 50% of their value since then.
This year, the company’s stock has declined by nearly 12%, underperforming the S&P 500 Application Software index, which has remained stable.
The decline has been attributed to concerns over reduced spending by its clients.
In its latest quarter, Enfusion reported year-on-year revenue growth of 16% to $49.5m.