Chicago-based CCC Information Services Inc. and Mitchell International Inc. in San Diego have merged in a stock-for-stock swap worth $1.4 billion.
The companies called the deal a "merger of equals." Both companies are privately owned and provide information and technology solutions to the insurance claims and automotive repair industries.
The transaction was unanimously approved by both companies' boards of directors.
A statement announcing the transaction said ownership and board seats will be held equally by Aurora Capital Group, the private equity sponsor of Mitchell, and Investcorp, the private equity sponsor of CCC.
The combined companies will have annual sales of approximately $460 million and approximately 2,000 employees, according to the statement. Githesh Ramamurthy, chairman and chief executive officer of CCC, will become the CEO of the combined company, and Alex Sun, president and CEO of Mitchell, will serve as president of CCC-Mitchell.
Mr. Ramamurthy said of the transaction, "The combined company will be able to expand and update our product portfolio, customer base and geographic coverage more quickly than either company could have individually.
"Over time, our auto physical damage products and services will evolve to a single, leading platform for each of our applications, allowing us to deliver greater innovation and functionality to both insurers and repairers."
Mr. Sun said, "This combination brings together a unique set of products and skills and an increased resource capability that will accelerate innovation, enhance our service levels and, over time, simplify the lives of our respective customers through greater connectivity and more seamless workflow between the broader portfolio of solutions offered."
The companies said they expect to operate from multiple locations "while maintaining a significant presence in both San Diego and Chicago."
The transaction is expected to close immediately following regulatory review and satisfaction of customary closing conditions, according to the companies.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.