Insurtech Duck Creek Technologies to go private via Vista Equity deal

Global investment firm Vista Equity Partners has agreed to acquire Duck Creek Technologies, a Nasdaq-listed insurtech company, for around $2.6 billion in cash.

Duck Creek Technologies offers cloud-based property and casualty (P&C) insurance solutions to its customers, including American International Group and Berkshire Hathaway Specialty Insurance.

As per the terms of the deal, Duck Creek Technologies’ shareholders will be paid $19 per share, which is a 46% premium to the company’s closing stock price on 6 January 2023.

Post-closing, Duck Creek Technologies will become a privately held company and its common stock will cease to list on the stock market.

Michael Jackowski — Duck Creek Technologies CEO said: “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.”

Vista Equity Partners anticipates funding the deal through fully committed equity financing, which that is not subject to any financing conditions.

Monti Saroya — Vista Equity Partners’ Flagship Fund Co-Head 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.”

The agreement comes with a “go-shop” period under which Duck Creek Technologies’ board of directors will have the right to terminate the merger agreement to enter into a superior proposal till 7 February 2023.

Anticipated to complete in the second calendar quarter of 2023, the deal is subject to the US antitrust clearance, Duck Creek Technologies’ stockholders’ approval, and other customary closing conditions.