{"id":28741,"date":"2023-01-09T18:36:27","date_gmt":"2023-01-09T18:36:27","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/09\/vista-equity-partners-to-acquire-insurance-software-maker-duck-creek-for-2-6b\/"},"modified":"2023-01-09T18:36:27","modified_gmt":"2023-01-09T18:36:27","slug":"vista-equity-partners-to-acquire-insurance-software-maker-duck-creek-for-2-6b","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/09\/vista-equity-partners-to-acquire-insurance-software-maker-duck-creek-for-2-6b\/","title":{"rendered":"Vista Equity Partners to acquire insurance software maker Duck Creek for $2.6B"},"content":{"rendered":"

<\/a>\n
<\/p>\n

\n

Duck Creek Technologies Inc., a major software supplier to the insurance sector, has agreed to be acquired by Vista Equity Partners for $2.6 billion.\u00a0<\/span><\/p>\n

The deal was <\/span>announced<\/span><\/a> this morning. The $2.6 billion that Vista has agreed to pay for Duck Creek values the software maker at $19 per share, a 46% premium to the Friday closing price of its stock.<\/span><\/p>\n

Boston-based Duck Creek provides a suite of cloud services that property and casualty insurance providers use to manage their day-to-day business operations. According to the company, insurers rely on its services to process more than 50,000 transactions per day. Duck Creek counts Geico Corp., Liberty Mutual Group Inc. and other major industry players among its customers.<\/span><\/p>\n

Duck Creek\u2019s cloud services enable insurers to create new insurance offerings through a low-code interface. According to the company, its low-code interface provides the ability to quickly set prices, create rules for how claims should be processed and define other key details. Duck Creek also promises to significantly reduce the amount of work involved in updating the terms of existing insurance plans.\u00a0<\/span><\/p>\n

Before rolling out a new insurance plan, Duck Creek customers can use a testing tool provided by the company to detect potential issues. The tool makes it possible to compare different combinations of policy terms and prices.<\/span><\/p>\n

Besides product development and testing, Duck Creek also promises to ease aspects of insurers\u2019 day-to-day business operations.\u00a0<\/span><\/p>\n

To streamline insurance claim processing, Duck Creek has built a tool that can automatically collect forms and other data from policyholders. The tool can also approve some claims without the need for manual input. Another feature provided by Duck Creek helps insurers inform the insurance agencies they work with about newly launched offerings.\u00a0<\/span><\/p>\n

Alongside its core insurance delivery capabilities, Duck Creek provides a set of data analytics tools. Duck Creek says that the tools can be used for tasks such as identifying upselling opportunities in a company\u2019s customer base. Additionally, the software maker provides data governance features that ensure the information an insurer uses as part of its analytics projects is accurate.\u00a0<\/span><\/p>\n

\u201cDuck Creek is playing an outsized role in accelerating cloud strategies and unlocking all the advantages they provide this crucial sector of today\u2019s economy,\u201d said Monti Saroya, a senior managing director at Vista Equity Partners and the co-head of its flagship fund.<\/span><\/p>\n

Duck Creek <\/span>reported<\/span><\/a> financial results for its fiscal first quarter ended November 30 on Friday. The company\u2019s sales grew 10% year-over-year, to $80.6 million, during the quarter. Duck Creek\u2019s subscription revenue segment, which includes revenue from its flagship cloud services, increased 23% year-over-year.<\/span><\/p>\n

Vista Equity Partners expects to complete its acquisition of Duck Creek by the end of June. A go-shop provision in the acquisition agreement allows the software maker to seek a higher takeover bids until February 8.<\/span><\/p>\n

The purchase of Duck Greek is the latest in a series of multibillion-dollar acquisitions made by Vista Equity Partners over recent months.\u00a0<\/span>In August, the investment firm\u00a0<\/span>acquired<\/span><\/a>\u00a0tax compliance software maker Avalara Inc. for $8.4 billion. More recently, Vista Equity Partners\u00a0agreed<\/a>\u00a0to buy cybersecurity training provider KnowBe4 Inc. in a $4.6 billion transaction.\u00a0<\/span><\/p>\n

Photo: Duck Creek<\/a><\/h5>\n
\n
\n

Show your support for our mission by joining our Cube Club and Cube Event Community of experts. Join the community that includes Amazon Web Services and Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger and many more luminaries and experts.<\/span><\/h3>\n<\/div><\/div>\n