Vista Equity Partners is making a splash with its $2.6B acquisition of insurance software company, Duck Creek

Vista Equity Partners will acquire Duck Creek Technologies in a $2.6 billion transaction, taking the software provider private.

Boston-based Duck Creek, a SaaS provider for the P&C insurance sector, went public in 2020 at $5 billion. It reached a peak of $7 billion in early 2021, but its value has since dropped to less than $2 billion with Friday’s closing price of around $13 per share.

Vista’s $19 per-share offer yields a 46% premium on Duck Creek’s most recent market closing price, and 64% more than its 30-day volume-weighted average price (VWAP), amounting to an all-cash transaction of $2.6 billion.

Enterprising

Vista made headlines with its acquisition of Citrix for $16.5 billion, and further bolstered its portfolio by purchasing Avalara for $8.4 billion and selling Datto to Evergreen/Elliott for $6.2 billion in the past year alone.

Vista has a long history in insurance software, with acquisitions like Applied Systems, Eagleview and Vertafore in the last two decades.

“Vista’s Jeff Wilson noted in a statement, ‘We’ve enjoyed success partnering with prominent enterprise software firms within the insurance sector and related fields.’ Excitement abounds as we join forces with Duck Creek, leveraging their premier platform to serve many of the world’s foremost property & casualty insurers,” said Wilson.

Vista anticipates closing the deal in Q2 2023.

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Max Chen

Max Chen is an AI expert and journalist with a focus on the ethical and societal implications of emerging technologies. He has a background in computer science and is known for his clear and concise writing on complex technical topics. He has also written extensively on the potential risks and benefits of AI, and is a frequent speaker on the subject at industry conferences and events.

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