Private equity firm Vista Equity Partners has reached a deal valued at around $2.6bn to buy insurtech Duck Creek Technologies.
The all-cash transaction of $19.00 per share to take Duck Creek private marks a 46% premium to the firm’s last stock close.
It also represents an almost 64% premium to the Boston-based insurtech’s 30-day volume weighted average price.
Post deal completion, which is expected in the second quarter of this year, Duck Creek shares will cease to be publicly listed.
The deal awaits the nod of Duck Creek stockholders and US antitrust authorities.
It includes a “go-shop” period ending on 7 February, until which Duck Creek’s board and its advisers can solicit alternative offers from third parties.
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The board has the right to abandon the Vista deal in the event of getting a superior offer.
Skadden, Arps, Slate, Meagher & Flom is offering legal counsel to Duck Creek on the deal, while J.P. Morgan is the financial adviser.
Vista managing director said: “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.”
A software provider for property and casualty (P&C) insurers, Duck Creek went public in August 2020 at $27 per share.
However, its stock lost nearly 60% of its value last year.
Duck Creek 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.”