KKR Buys Mitchell International

Aurora Capital is selling Mitchell International to KKR. Financial terms weren’t announced. San Diego-based Mitchell provides technology, connectivity and information solutions to the property & casualty claims and collision repair industries. BofA Merrill Lynch and Three Ocean Partners advised KKR. Goldman, Sachs & Co. provided financial advice to Mitchell. William Blair & Company and Guggenheim Securities also advised Mitchell.


SAN DIEGO, CA, Sep 05, 2013 (Marketwired via COMTEX) — Mitchell International, a leading provider of technology, connectivity and information solutions to the Property & Casualty (P&C) Claims and Collision Repair industries, announced that it has executed a definitive agreement with KKR whereby Aurora Capital Group will exit its equity position and transition ownership to KKR. Financial terms of the transaction were not disclosed.
Founded in 1946 and headquartered in San Diego, California, Mitchell offers a comprehensive range of products and services that assist insurance carriers, collision repair facilities and other claims payers in efficiently managing automotive and workers’ compensation insurance claims. With approximately 2,000 associates, Mitchell provides products that help businesses and individuals restore their lives and property, and it processes more than 50 million transactions annually for over 300 insurance companies and over 30,000 collision repair facilities worldwide. Mitchell solutions also assist clients to accurately and efficiently manage claims outcomes and are a critical driver of healthcare cost containment for its customers.
“We have built Mitchell into a great company by investing in our products, people and infrastructure. KKR shares our vision of being a growth-oriented, customer-driven company built on strong values,” said Alex Sun, President and CEO of Mitchell. “This is an exciting time for Mitchell, and I am extremely appreciative of Aurora’s support over the years. We are excited to work with KKR on Mitchell’s next phase of growth and development as we maintain focus on empowering our clients to deliver the best possible outcomes. We believe KKR’s capabilities in technology and healthcare, both domestically and internationally, will enable us to find new ways to provide valuable and innovative solutions to our clients.”
Mitchell recently expanded its international footprint through an investment in GT Motive, a company dedicated to the development of claims management solutions for the automotive sector in Spain and throughout Europe. Earlier this week, Mitchell also announced a strategic alliance with Guidewire, the leading core claims system provider to the P&C industry.
Herald Chen, co-Head of KKR’s technology investing group, said, “We believe that Mitchell represents an attractive investment in a market leader in an important market segment. For more than 67 years, Mitchell has provided products that help businesses and individuals restore their lives and property. We are excited to partner with Mitchell’s executive leadership team and support the company’s future growth plans as Mitchell continues to invest in its customers, its people and its market-leading technology.”
Josh Klinefelter, Partner of Aurora Capital Group, said, “We are proud of our collaboration with Mitchell and the positive outcome this transaction represents for all parties. Through its unwavering focus on empowering the best outcomes for its clients, Mitchell, led by President and CEO Alex Sun, grew organically and also expanded through strategic acquisitions. Our partnership with Mitchell exemplifies Aurora’s strategy of helping outstanding companies strengthen their market leadership positions and accelerate their growth trajectories.”
The transaction is subject to customary conditions to closing, including regulatory approval, and is expected to close in the fourth quarter. There will be no disruption of service or support from Mitchell as a result of the transaction.
KKR was advised by BofA Merrill Lynch and Three Ocean Partners on the transaction. Goldman, Sachs & Co. served as lead financial advisor to Mitchell. William Blair & Company and Guggenheim Securities also advised the company.
About KKR
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $83.5 billion in assets under management as of June 30, 2013. KKR has deep industry expertise investing in the technology sector. The firm has invested over $9 billion in technology investments. Its investments span a broad range of segments, including software, hardware, internet, digital media, information services and outsourced support services to corporate and public sector customers. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with fund investors through its client relationships and capital markets platform. KKR & Co L.P. is publicly traded on the New York Stock Exchange /quotes/zigman/600022/quotes/nls/kkr KKR +0.41% , and “KKR,” as used in this release, includes its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate.
About Mitchell
Mitchell is uniquely positioned to simplify, enhance and accelerate claims handling processes across the P&C industry through deep workflow solutions that include unparalleled access to data, advanced analytics and decision support tools. Mitchell’s expert workflow and adjusting solutions advance the claims management process by enabling automotive physical damage, bodily injury and workers’ compensation clients to process claims more accurately, consistently, and cost-effectively.
Mitchell’s solutions provide an expert level of decision support and connectivity within the claims organization and with industry partners to achieve optimal outcomes. Mitchell’s comprehensive solution portfolio and robust SaaS infrastructure enables tens of millions of electronic transactions to be processed each month for over 300 insurance companies, including the majority of the top 25 insurance carriers, and over 30,000 collision repair facilities. With an expanding global footprint, Mitchell products are currently utilized in the Americas, Europe and Asia. Mitchell is headquartered in San Diego, California, and has 2,000 employees. For more information, please visit www.mitchell.com.
About Aurora Capital Group
Aurora Capital Group is a Los Angeles-based private investment firm managing over $2.0 billion of capital across several private equity funds. Aurora’s traditional private equity vehicle, Aurora Equity Partners, focuses principally on control investments in middle-market businesses with leading market positions, strong cash flow profiles and actionable opportunities for growth in partnership with operating management. Aurora Resurgence invests in debt and equity securities of middle-market companies and targets complex situations including corporate carve outs. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing. For more information about Aurora Capital Group, please visit www.auroracap.com.