Apax Takes Majority Stake in Accenture’s Duck Creek, as Software Developers Attract Buyers
Private equity firm Apax Partners will acquire 60 percent of Duck Creek Technologies, a provider of insurance software, from Accenture (NYSE: ACN). Accenture, which operates as a consulting, technology services and outsourcing firm, purchased Duck Creek in 2011 and will continue to hold a 40 percent stake in the target.
Bolivar, Missouri-based Duck Creek offers property and casualty insurance software and services delivered on-premise or via its on-demand service model. Under the agreement between London-based Apax and Chicago-headquartered Accenture, Duck Creek, operating as a new and independent company, will focus on further developing products and technologies to extend its reach. Additionally, Accenture will collaborate with Duck Creek to help the insurance market gain access to these technologies. With Apax on board, the company also gains access to increased capital and managing expertise to fund further in-house investments and acquisitions.
The transaction is expected to close in late-August. Financial terms have not been disclosed. Advisers for Apax included Evercore for M&A, Skadden, Arps, Slate, Meagher & Flom for legal and PWC for financial.
For Apax, this is the latest investment in the software sector. Since 2008, the PE firm has invested roughly $2.5 billion in equity in companies in the industry. In March, Apax agreed to buy network performance management software provider InfoVista SA from Thoma Bravo. This is also the most recent move for Apax within the heath care market. In March, the firm announced plans to purchase a majority share of the respiratory business of Becton, Dickinson and Co. (NYSE: BDX), to form an independent company.
In July 2015, Accenture acquired Hong Kong-based digital agencies PacificLink Group to grow its presence in Asia. Earlier in June 2015, it also purchased Javelin Group, a retail strategy and digital services provider based in London.