Following the closing of the deal, Duck Creek Technologies will become a privately held company
Duck Creek Technologies to be acquired by Vista Equity Partners. (Credit: Steve Buissinne from Pixabay)
Vista Equity Partners has signed a definitive agreement with Duck Creek Technologies, a US-based intelligent solutions provider for property and casualty (P&C) insurers, to acquire the latter in an all-cash deal worth around $2.6bn.
As per the terms of the agreement, shareholders of the Nasdaq-listed insurtech company will be paid $19 per share by Vista Equity Partners.
Following the closing of the deal, Duck Creek Technologies will become a privately held company.
Apart from P&C insurers, the company offers its intelligent solutions and services to the general insurance sector.
According to Duck Creek Technologies, the proposed deal negotiations were led by the company’s board of directors’ special committee.
The special committee recommended the company’s board to approve the merger deal with Vista Equity Partners.
Duck Creek Technologies CEO Michael Jackowski 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.”
Vista Equity Partners expects to fund the acquisition with fully committed equity financing which is not subject to any financing condition.
Vista Equity Partners managing director Jeff Wilson said: “Vista has an established track record of partnering with leading enterprise software businesses within the insurance industry and related verticals.
“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.”
The deal, which is subject to Duck Creek Technologies’ shareholders’ approval, regulatory approvals, and other customary conditions, is expected to close in Q2 2023.
Earlier this month, Duck Creek Technologies agreed to acquire Switzerland-based modern payments platform Imburse Payments. The payments platform offers cloud-native software-as-a-service (SaaS) payment solutions for the insurance sector.