Leading global private equity firm to acquire
majority stake in Accenture’s Duck Creek Technologies business;
companies to accelerate development and implementation of
cloud-based, digital claims, billing and policy administration
software, focus on IoT, analytics, emerging tech
Accenture (NYSE:ACN) and Apax Partners, a leading global private
equity firm, have agreed to form a joint venture to accelerate the
innovation of claims, billing and policy administration software
for the insurance industry. As part of the joint venture, funds
advised by Apax will acquire a 60 percent stake in Accenture’s Duck
Creek Technologies, with Accenture retaining a 40 percent stake.
The joint venture will operate as a new and independent
company.
The joint venture is intended to further accelerate the
development of Duck Creek products and technologies, leveraging
advanced digital and cloud technology, and to extend the reach of
Duck Creek in key markets. 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 will also be designated as a premier
systems integrator and consulting partner for Duck Creek
Technologies pursuant to a strategic alliance arrangement.
Duck Creek Technologies will gain access to substantial capital
and management expertise through Apax Partners. This will enable
further investment, both organically and through acquisitions, to
fuel rapid expansion of Duck Creek products and capabilities –
particularly Duck Creek On-Demand, a native Software as a Service
capability delivered through the cloud. Combined, this capital,
technology and professional services capability will enable new
levels of end-to-end, cloud-based solutions for property and
casualty (P&C) insurers.
“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. “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.”
Duck Creek’s senior management, and approximately 1,000
insurance and insurance software specialists are expected to join
the new joint venture. Accenture will own 40 percent of the venture
as a significant, but non-controlling minority partner.
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.”
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
significantly developed and expanded its suite of P&C insurance
technology solutions. The suite supports a full range of
capabilities – from underwriting, policy administration and agent
support to rating, billing and claims – and is designed to work
independently or as a combined suite to manage all aspects of the
P&C insurance lifecycle.
Since it became part of Accenture, Duck Creek has expanded its
client base to include leading insurers and has been recognized as
a “Leader” for its ability to execute and its completeness of
vision in Gartner’s Magic Quadrants for Property & Casualty
Insurance Claims Management Modules and Policy Management Modules,
North America.1
The transaction, which is subject to customary closing
conditions, is expected to close toward the end of Accenture’s 2016
fiscal year, which ends Aug. 31. Financial terms of the transaction
were not disclosed.
About AccentureAccenture is a leading global professional
services company, providing a broad range of services and solutions
in strategy, consulting, digital, technology and operations.
Combining unmatched experience and specialized skills across more
than 40 industries and all business functions – underpinned by the
world’s largest delivery network – Accenture works at the
intersection of business and technology to help clients improve
their performance and create sustainable value for their
stakeholders. With approximately 373,000 people serving clients in
more than 120 countries, Accenture drives innovation to improve the
way the world works and lives. Visit us at www.accenture.com.
About Apax Partners LLPApax Partners LLP is a leading
global private equity advisory firm. Over its more than 30 year
history, Apax Partners has raised and advised funds with aggregate
commitments of $38 billion*. Funds advised by Apax Partners invest
in companies across four global sectors of Tech and Telco,
Services, Health Care and Consumer. These funds provide long-term
equity financing to build and strengthen world-class companies.
Apax funds have been one of the most active private equity
investors in the software sector, having invested over $2.5 billion
in equity since 2008. Apax’s deep sector expertise and global
resources have helped accelerate organic and inorganic growth
within its software portfolio and have enabled geographic
expansion. Current and past software investments include Epicor,
Activant, TriZetto (sold to Cognizant), Aptos, Exact, Paradigm,
Sophos (London: SOPH) and Realpage (NASDAQ:RP). For further
information about Apax Partners, please
visit www.apax.com.
* Funds raised since 1981, commitments converted from fund
currency to USD at FX rates as at September 2015.
About Duck Creek TechnologiesDuck Creek Technologies LLC,
an Accenture company, is a leading provider of comprehensive
P&C insurance software and services delivered on-premise or via
Duck Creek On-Demand, a Software as a Service model. The wholly
owned subsidiary of Accenture delivers configurable software that
is designed to work independently or as a combined approach to
quickly and seamlessly handle the unique needs of insurers of all
sizes. Our technology solutions enable clients to optimize outcomes
through streamlined operations, shared data, and consistent
functionality. For more information, visit www.duckcreek.com.
1 Gartner, “Magic Quadrant for Property and Casualty
Insurance Policy Management Modules, North America,” Jeff Haner,
January 25, 2016 and December 23, 2014; Gartner, Inc. “Magic
Quadrant for Property and Casualty Insurance Claims Management
Modules,” by Jeff Haner, June 24, 2015 and May 28, 2014.
Disclaimer: Gartner does not endorse any vendor, product or
service depicted in its research publications, and does not advise
technology users to select only those vendors with the highest
ratings. Gartner research publications consist of the opinions of
Gartner’s research organization and should not be construed as
statements of fact. Gartner disclaims all warranties, expressed or
implied, with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.
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businesses, entering into joint ventures or divesting businesses;
the company’s Global Delivery Network is increasingly concentrated
in India and the Philippines, which may expose it to operational
risks; changes in the company’s level of taxes, as well as audits,
investigations and tax proceedings, or changes in the company’s
treatment as an Irish company, could have a material adverse effect
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services, the company’s results of operations, financial condition
and cash flows could be adversely affected; the company’s results
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Accenture plc’s most recent annual report on Form 10-K and other
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version on businesswire.com: http://www.businesswire.com/news/home/20160418005679/en/
AccentureSean K. Conway, + 1 917 452
7116sean.k.conway@accenture.comorMelissa Volin, + 1 267 216
1815melissa.volin@accenture.comorApax PartnersAlex Wessendorff, +
44 20 7872 6461alex.wessendorff@apax.com
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