In what industry observers are describing as a "significant deal," Accenture has entered into an agreement to acquire privately held Duck Creek Technologies, which specializes in software solutions for the property and casualty insurance industry. Terms of the transaction, which is expected to close within the next 30 days, were not disclosed.
John DelSanto, global managing director of Accenture's insurance practice, says that "Duck Creek is a leader in the P&C policy-administration market as demonstrated by its customer base and its sales momentum."
Duck Creek was founded in 2000 in Bolivar, Mo. and has grown to serve more than 60 clients in North America and the UK, processing commercial, personal and specialty lines of business. Duck Creek also has offices in Columbia, S.C.; Farmington, Conn.; and Surrey, United Kingdom.
Steve Hall, president and CEO of Duck Creek, says, "The two companies will bring together a powerful set of industry skills, technology services and implementation capabilities for P&C insurance clients, who will also benefit from additional experience, scale and R&D investment."
In a statement, Accenture explains the acquisition will strengthen its capabilities to support P&C insurers of all sizes.
Karen Furtado, a partner in Strategy Meets Action, believes this is significant.
"Accenture is very dominant with tier-one and tier-two carriers, but doesn't have a footprint in tier-three or four companies—those below $1 billion," Furtado says. "Duck Creek spans all tiers, but they really service [the middle market]."
Craig Weber, senior vice president and head of the insurance practice at Celent, was not surprised by the announcement.
"There are a lot of software vendors we are tracking that we think are interesting acquisition candidates," he says. "The market is ripe for that kind of activity right now. Certainly the market is freshening up for buyers, and as market dynamics shift, that always creates these kinds of opportunities."
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