Apax Partners has acquired a majority stake in Duck Creek Technologies from Accenture. No financial terms were disclosed. Insurance software company Duck Creek Technologies was formed as a joint venture between Apax and Accenture.
NEW YORK & LONDON–(BUSINESS WIRE)–Accenture (NYSE:ACN) has completed the sale of a majority stake in Duck Creek Technologies to funds advised by Apax Partners, a leading global private equity firm. As part of the agreement, which was originally announced on April 18, Accenture and Apax have formed a joint venture in which Apax funds hold a 60 percent stake in Duck Creek Technologies, and Accenture retains a 40 percent stake. Duck Creek will leverage new access to capital to accelerate development and expansion of property and casualty (P&C) insurance technologies.
As part of the agreement, Accenture will collaborate with Duck Creek to enable insurers to take advantage of the Internet of Things, Big Data analytics and other emerging technologies. Accenture is also a Platinum Premier delivery partner for Duck Creek, and Duck Creek is a preferred technology partner of Accenture in the P&C insurance industry. All of Duck Creek’s senior management team and approximately 1,000 insurance software and technology personnel from Accenture have transferred to the new company.
“As new and revolutionary digital technologies emerge, insurers will be pressed to modernize their core systems in order to support a new generation of services and capabilities,” said John Cusano, senior managing director of Accenture’s insurance practice. “Carriers that master both sides of this technology equation will be well positioned to compete in the future. The combination of our Duck Creek joint venture and our strong forward focus on digital technologies and services offers our clients differentiated capabilities that can enable market advantage.”
Michael A. Jackowski, chief executive officer of Duck Creek Technologies, said: “We have opened the door to important new opportunities for growth and development as a joint venture and independent company. Our relationship to Apax provides new access to investment capital, and our continued close relationship with Accenture provides continuity of the digital capabilities and services that are important to many of our clients.”
Funds advised by Apax completed their acquisition of a majority stake in Duck Creek Technologies concurrent to completing its acquisition of Agencyport, announced June 1. Agencyport, a leader in digital distribution technologies connecting P&C insurers with their agents and brokers, will be an integral part of Duck Creek Technologies.
“This marks the beginning of an important new period of insurance technology development,” said Jason Wright, a partner at Apax. “You will see game-changing innovations in the insurance sector, as we provide growing investment support to the distinguished management team of this innovative joint venture with Accenture.”
Accenture 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 LLP
Apax 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 in excess of $45 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. For further information about Apax Partners, please visit www.apax.com.
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 June 30, 2016.
About Duck Creek Technologies
Duck 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.