London-based private equity and venture capital firm Apax Partners has agreed to acquire a 60% equity stake in Duck Creek Technologies, the insurance software business of Dublin-based management consulting giant Accenture.
Financial terms were not disclosed, but the companies said the joint venture will operate as a new and independent company. Bolivar, Mo.-based Duck Creek's senior management, and approximately 1,000 insurance and insurance software specialists, are expected to join the new joint venture.
Apax is no stranger to investing in the insurance industry. The private equity firm also has stakes in brokerages Hub International and Assured Partners, among others.
The transaction is expected to close toward the end of Accenture's 2016 fiscal year, which ends Aug. 31.
In a statement, Mike Jackowski, president of Duck Creek Technologies, who will become CEO of the joint venture, said, "There has never been a more important time for insurance companies to embrace new technologies that will secure their future competitiveness. Working with Accenture and Apax, we look forward to continued development and added investments that will deliver true innovation for the insurance industry, now and well into the future."
Since acquiring Duck Creek Technologies in 2011, Accenture has developed and expanded its suite of Property & Casualty insurance software, which is designed to work independently or as a combined suite to manage all aspects of the P&C insurance lifecycle. As part of the venture, Accenture will collaborate with Duck Creek to help insurers take advantage of the Internet of Things, big data analytics and other emerging technologies. Accenture also will be designated as a systems integrator and consulting partner for Duck Creek Technologies pursuant to a strategic alliance arrangement.
Duck Creek Technologies will gain access to capital and management expertise through Apax Partners. This will enable further investment to fuel expansion of Duck Creek products and capabilities — particularly Duck Creek On-Demand, a native software as a service capability delivered through the cloud.
"The insurance sector is on the cusp of a digital revolution that will redefine how it operates," said John Cusano, senior managing director and head of Accenture's global insurance practice, in a statement. "This joint venture will open the door to a brave new stage of development. Apax's record of investing in technologies that become category-leaders has made them an ideal partner in this venture. We look forward to helping shape and deliver leading-edge digital technologies for our clients through this agreement and maintaining a substantial interest in Duck Creek's growth and success."
In a statement, Jason Wright, a partner at Apax, said, "Over the past five years, Duck Creek has evolved into a leading global software solution for top insurers. Apax intends to build upon this success by supporting the current management team to accelerate innovation in partnership with Accenture and its significant digital and insurance domain expertise. We believe this joint venture will be a game changer in the insurance technology arena."
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