London-based private equity and venture capital firm ApaxPartners has agreed to acquire a 60% equity stake in Duck CreekTechnologies, the insurance software business of Dublin-basedmanagement consulting giant Accenture.

Financial terms were not disclosed, but the companies said thejoint venture will operate as a new and independent company.Bolivar, Mo.-based Duck Creek's senior management, andapproximately 1,000 insurance and insurance software specialists,are expected to join the new joint venture. 

Apax is no stranger to investing in the insurance industry. Theprivate equity firm also has stakes in brokerages Hub International andAssured Partners, among others.

The transaction is expected to close toward the end ofAccenture's 2016 fiscal year, which ends Aug. 31.

In a statement, Mike Jackowski, president of Duck CreekTechnologies, who will become CEO of the joint venture, said,"There has never been a more important time for insurance companiesto embrace new technologies that will secure their futurecompetitiveness. Working with Accenture and Apax, we look forwardto continued development and added investments that will delivertrue innovation for the insurance industry, now and well into thefuture."

Since acquiring Duck Creek Technologies in 2011, Accenture hasdeveloped and expanded its suite of Property & Casualtyinsurance software, which is designed to work independently or as acombined suite to manage all aspects of the P&C insurancelifecycle. As part of the venture, Accenture will collaborate withDuck Creek to help insurers take advantage of the Internet ofThings, big data analytics and other emerging technologies.Accenture also will be designated as a systems integrator andconsulting partner for Duck Creek Technologies pursuant to astrategic alliance arrangement.

Duck Creek Technologies will gain access to capital andmanagement expertise through Apax Partners. This will enablefurther investment  to fuel expansion of Duck Creekproducts and capabilities — particularly Duck Creek On-Demand, anative software as a service capability delivered through thecloud. 

"The insurance sector is on the cusp of a digital revolutionthat will redefine how it operates," said John Cusano, seniormanaging director and head of Accenture's global insurancepractice, in a statement. "This joint venture will open the door toa brave new stage of development. Apax's record of investing intechnologies that become category-leaders has made them an idealpartner in this venture. We look forward to helping shape anddeliver leading-edge digital technologies for our clients throughthis agreement and maintaining a substantial interest in DuckCreek's growth and success."

In a statement, Jason Wright, a partner at Apax, said, "Over thepast five years, Duck Creek has evolved into a leading globalsoftware solution for top insurers. Apax intends to build upon thissuccess by supporting the current management team to accelerateinnovation in partnership with Accenture and its significantdigital and insurance domain expertise. We believe this jointventure will be a game changer in the insurance technologyarena."

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