Car Insurance Software Provider Valued at $7.1 Billion
Private equity firm Advent International is actively considering the sale of CCC Intelligent Solutions Holdings Inc., a major player in the car insurance software industry, with a staggering market value of $7.1 billion. According to sources familiar with the matter, Advent is currently exploring potential acquirers, which include other prominent buyout firms. It is important to note that no deal has been confirmed at this stage.
Morgan Stanley, a leading investment bank, has been enlisted to advise CCC during these pivotal talks with potential acquirers. Despite the considerable buzz surrounding this potential transaction, both CCC representatives and Advent International, which holds a commanding 56% stake in CCC, have declined to comment on the matter. Morgan Stanley has also not provided an official statement at this time.
Market Reaction:
In response to this news, CCC shares witnessed a surge in after-hours trading on Friday in New York, marking an impressive 8.6% increase to $12.50.
Company Overview:
CCC, established in 1980, is renowned for its provision of software solutions to a vast network of 35,000 companies engaged in automotive claims and collision repair. The company’s diverse clientele includes insurance firms, parts suppliers, and car manufacturers.
Historical Context:
Advent International’s involvement with CCC dates back to 2017 when they acquired the company from private equity firms TPG Inc. and Leonard Green & Partners. In 2021, CCC made its debut on the public markets through a merger with a blank-check company, a transaction that valued the company at $6.5 billion.
Financial Performance:
Despite facing a significant slump in car insurance claims during the height of the COVID-19 pandemic, CCC has exhibited a steady resurgence in its business. In its most recent financial reports, CCC posted total revenue of $211.7 million for the second quarter of 2023, reflecting a robust 10% growth compared to the previous year. Moreover, the company’s adjusted gross profit for the same period amounted to $162.0 million, showcasing considerable improvement from the $148.4 million recorded in the preceding year.
As of now, the industry and investors eagerly await further developments in this potential sale, which could significantly impact the car insurance software sector. Please stay tuned for updates as this story unfolds.
