Vista Equity Partners, a major private equity firm, has announced plans to buy Duck Creek Technologies for USD 2.6 billion.
The SaaS-based software provider for the property and casualty (P&C) insurance industry with headquarters in Boston, Duck Creek, went public in 2020 with an initial market cap of roughly USD 5 billion. The value of Duck Creek has dropped to below USD 2 billion over the past year, with a closing price of about USD 13 per share, after reaching a peak of about USD 7 billion in early 2021.
When compared to Duck Creek’s most recent market closing price and its volume-weighted average price (VWAP) over the previous 30 days, Vista’s USD 19 per share offer represents a 46% and 64% premium, respectively. Vista said it would pay USD 2.6 billion in an all-cash deal.