The deal with the blank-cheque firm enables CCC to go public through a listing on the NYSE
CCC Information Services, a US-based technology provider to the insurance and automotive industries, has agreed to merge with Dragoneer Growth Opportunities, in a deal valued at about $7bn.
Dragoneer Growth Opportunities is a special purpose acquisition company (SPAC) created by an affiliate of Dragoneer Investment Group.
The combined company, post-merger, is likely to be renamed CCC Intelligent Solutions with a listing on the New York Stock Exchange (NYSE).
Established in 1980, CCC had developed a mission-critical SaaS platform that caters to the property and casualty (P&C) insurance economy.
The company was acquired by Advent International in 2017 from Leonard Green Partners (LGP) and Texas Pacific Group (TPG).
CCC’s platform offers advanced artificial intelligence (AI), Internet of things (IoT), network management workflow solutions, and customer experience.
For the year 2020, CCC expects to report revenue of around $600m.
The company is claimed to facilitate over $100bn of transactions annually among an ecosystem of interconnected businesses.
Its network comprises insurers, repair facilities, parts suppliers, automotive manufacturers, and other industry participants.
CCC’s SaaS platform is said to help its customers in digitising operations, enhance business performance, and in making better decisions.
Dragoneer founder and portfolio manager Marc Stad said: “CCC’s advanced technology platform enables the right groups to connect quickly and efficiently, and its twenty-plus years of profitable growth are a testament to the value the company provides to its customers.”
CCC’s chairman and CEO Githesh Ramamurthy will continue to lead it post-merger.
Ramamurthy said: “Throughout our history, CCC has developed pioneering technology solutions focused on enabling growth, increasing efficiency, and empowering new possibilities for all participants in the P&C insurance economy.
“We serve a large and interconnected market that is still in the early stages of digitising its operations and is growing in complexity. We believe CCC is well-positioned to support customer digitization in this dynamic market.”
Following the merger, CCC Intelligent Solutions is anticipated to get nearly $968m in net proceeds. This includes $150m of private investment in public equity (PIPE) from Fidelity Investments, funds and accounts advised by T. Rowe Price Associates, and other investors.
CCC’s current shareholders are likely to hold nearly 83.2% stake in CCC Intelligent Solutions. Advent International will remain the largest shareholder in the enlarged company.
The merger deal is expected to close in Q2 2021. It will be subject to Dragoneer shareholders’ approval, and the fulfilment or waiver of certain other customary closing conditions.