Non-public fairness agency Vista Fairness Companions has reached a deal valued at round $2.6bn to purchase insurtech Duck Creek Applied sciences.
The all-cash transaction of $19.00 per share to take Duck Creek personal marks a 46% premium to the agency’s final inventory shut.
It additionally represents an nearly 64% premium to the Boston-based insurtech’s 30-day quantity weighted common worth.
Put up deal completion, which is predicted within the second quarter of this yr, Duck Creek shares will stop to be publicly listed.
The deal awaits the nod of Duck Creek stockholders and US antitrust authorities.
It features a “go-shop” interval ending on 7 February, till which Duck Creek’s board and its advisers can solicit various provides from third events.
The board has the precise to desert the Vista deal within the occasion of getting a superior provide.
Skadden, Arps, Slate, Meagher & Flom is providing authorized counsel to Duck Creek on the deal, whereas J.P. Morgan is the monetary adviser.
Vista managing director stated: “We’re excited to work with the Duck Creek workforce as we glance to construct on their best-in-class platform and options, which serve lots of the world’s main P&C insurance coverage carriers.”
A software program supplier for property and casualty (P&C) insurers, Duck Creek went public in August 2020 at $27 per share.
Nevertheless, its inventory misplaced almost 60% of its worth final yr.
Duck Creek CEO Michael Jackowski stated: “This transaction is a testomony to the worth of the Duck Creek platform, the success of our technique and the energy of our unimaginable workforce.
“Following a deliberate and considerate course of, the Board accredited this transaction which delivers an ideal final result for Duck Creek’s shareholders, offering them a sure and substantial money worth at a beautiful premium.”
