BY Fraser Tennant
In a deal that will see it become a privately held company, intelligent solutions provider Duck Creek Technologies is to be acquired by global investment firm Vista Equity Partners in an all-cash transaction valued at approximately $2.6bn.
Under the terms of the definitive agreement, Duck Creek shareholders will receive $19 per share in cash, which represents a 46 percent premium to Duck Creek’s closing stock price on 6 January 2023.
The merger agreement with Vista Equity Partners was approved following the recommendation of a special committee of the Duck Creek board of directors.
“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,” said Michael Jackowski, chief executive of Duck Creek. “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.”
The deal terms of the merger agreement include a ‘go-shop’ period expiring 7 February 2023, which allows Duck Creek’s board of directors and its advisers to actively initiate, solicit and consider alternative acquisition proposals from third parties.
Founded in 2000 and headquartered in Boston, Duck Creek provides cloud-based property and casualty insurance solutions to its customers including Berkshire Hathaway Specialty Insurance and American International Group.
“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,” said Monti Saroya, senior managing director and co-head of Vista’s flagship fund. “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.”
The transaction is expected to close in the second quarter of 2023, subject to the satisfaction of customary closing conditions, including approval by Duck Creek’s stockholders and US antitrust clearance.
“Vista has an established track record of partnering with leading enterprise software businesses within the insurance industry and related verticals,” concluded Jeff Wilson, managing director at Vista. “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.”
News: Vista to take Duck Creek Technologies private in $2.6 bln deal