Private equity giant acquires P&C insurtech for $2.6bn cash

Insurance technology firm serving some of the largest property and casualty (P&C) insurance carriers has agreed to be acquired by private equity giant Vista Equity Partners in an all-cash deal valued at about $2.6 billion.

Duck Creek Technologies has entered into a definitive agreement to be acquired by Vista, a global investment firm focused exclusively on enterprise software, data and technology-enabled businesses.

The deal is at a 46% premium to Duck Creek’s closing stock price on its last full trading day prior to the transaction announcement, and a premium of approximately 64% over the volume weighted average price of Duck Creek’s stock for the 30 days ending January 6, 2023.

The transaction is expected to close in the second quarter of 2023, subject to closing conditions, including approval by Duck Creek’s stockholders and US antitrust clearance.

Upon completion, Duck Creek’s common stock will no longer be publicly listed, and Duck Creek will become a privately held company. Vista Equity Partners intends to finance the transaction with fully committed equity financing that is not subject to any financing condition.

Michael Jackowski, chief executive officer of Duck Creek, said: “This transaction is a testament to the value of the Duck Creek platform, the success of our strategy and the strength of our incredible team. Following a deliberate and thoughtful process, the Board approved this transaction which delivers a great outcome for Duck Creek’s shareholders, providing them a certain and substantial cash value at an attractive premium.

“Duck Creek is proud to have pioneered cloud-based mission-critical systems for the P&C insurance industry to deliver a best-in-class customer experience. We are excited to enter the next chapter for Duck Creek in partnership with Vista Equity Partners to continue supporting P&C insurance carriers’ move to the cloud.”

Monti Saroya, senior managing director and co-head of Vista’s Flagship Fund, said: “Duck Creek is playing an outsized role in accelerating cloud strategies and unlocking all the advantages they provide this crucial sector of today’s economy. Duck Creek’s modern cloud architecture and demonstrated market traction position it to define the next generation of mission-critical technology for P&C insurance.”

Jeff Wilson, Managing Director at Vista, added: “We are excited to work with the Duck Creek team as we look to build on their best-in-class platform and solutions, which serve many of the world’s leading P&C insurance carriers.”

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