Santa Monica-based Wilshire Advisors is selling a product suite to the investment management software firm Clearwater Analytics. According to the deal’s terms, the financial service firm’s risk and performance models are worth $40 million.

The publicly traded software-as-a-software company will merge Wilshire’s Axiom, Atlas, Abacus and iQComposite tools into its own platform. Co-branded as Clearwater Wilshire Analytics, the partnership covers fixed-income and equity analytics, performance management, accounting and Global Investment Performance Standards compliance.

“Our team has built a robust, time-tested suite of solutions that delivers actionable insights and continues to represent the gold standard in the industry,” said Andy Stewart, chief executive of Wilshire. “Clearwater is the ideal steward to expand the business, invest in these capabilities and accelerate the growth of these analytic tools to serve a wide range of clients.”

Target customers range from investment managers to asset owners such as pension plans, foundations and endowments. As part of the partnership, Wilshire will share its network of asset holders with Clearwater. 

The deal is set to close in the second quarter.

“Together, we’re incredibly excited to expand into high-growth markets with a best-in-class investment management solution that will accelerate the way our clients grow their business,” said Sandeep Sahai, chief executive at Clearwater Analytics.

Wilshire’s investment research insights are what put it on the map 50 years ago when it established one of the first broad-based U.S. stock indexes. 

The $100 billion firm was bought by the investment firm CC Capital and private equity firm Motive Partners in 2020, providing capital for mergers and takeovers.

Last November, Wilshire made its first-ever acquisition, buying the investment advisory firm Lyxor Asset Management Inc. from the European asset management giant Amundi SA.