Until Feb. 7, 2023, Duck Creek will have a "go-shop" period, during which the company can actively initiate, solicit and consider alternative offers. Duck Creek's board can terminate the merger agreement with Vista should a superior offer materialize. (Credit: Valery Kachaev/Adobe Stock)
Vista Equity Partners is moving to purchase Duck Creek Technologies in a deal valued at $2.6 billion, according to the acquiring firm. Duck Creek shareholders will receive $19 per share, a 64% premium to the 30-day volume-weighted average price (ending Jan. 6, 223). Vista reported it plans to take Duck Creek private upon the transaction's closing.
The all-cash transaction, which is backed with fully committed equity financing that is not subject to any financing conditions, is expected to close during 2023's section quarter. Shares of Duck Creek rose more than 40% following the announcement on Jan. 9, 2023, according to an MT Newswire update.
"Duck Creek is playing an outsized role in accelerating cloud strategies and unlocking all the advantages they provide this crucial sector of today's economy," Monti Saroya, senior managing director and co-head of Vista's Flagship Fund, said in a release. "Duck Creek's modern cloud architecture and demonstrated market traction position it to define the next generation of mission-critical technology for P&C insurance."
Until Feb. 7, 2023, Duck Creek will have a "go-shop" period, during which the company can actively initiate, solicit and consider alternative offers. Duck Creek's board can terminate the merger agreement with Vista should a superior offer materialize.
"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," Michael Jackowski, CEO of Duck Creek, said in a release.
Duck Creek declined to comment further on the transaction.
During the 2022 fiscal year, Duck Creek's SaaS annual recurring revenue increased 25% compared with the year prior, reaching $169.3 million.
Vista's background in insurance technology investments is strong, as it has spent 20 years building a portfolio in the sector that includes companies such as Vertafore, Eagleview and Applied Systems.
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