Vista Equity Partners, a global technology investment firm led by Robert Smith, America’s richest Black billionaire, has entered into a definitive agreement to acquire Duck Creek Technologies, an innovative provider of intelligent solutions for the property and casualty insurance industry.
The all-cash transaction is valued at $2.6 billion and will see Duck Creek shareholders receive $19.00 per share, representing a 46-percent premium to Duck Creek’s closing stock price on Jan. 6, 2023, the last full trading day prior to the transaction announcement.
The acquisition represents a premium of approximately 64 percent over the volume-weighted average price of Duck Creek’s stock for the 30 days ending Jan. 6, 2023.
Vista Equity Partners is focused exclusively on enterprise software, data, and technology-enabled businesses. America’s richest Black billionaire, Smith, founded the technology investment firm in 2000, and today it boasts more than $50 billion in assets and yearly returns of 22 percent since its founding.
Almost all of Smith’s $11.9-billion fortune, which makes him America’s richest Black billionaire and the 155th richest billionaire in the world according to the Bloomberg Billionaires Index, stems from his stake in the Texas-based corporation.
Under Smith’s leadership, Vista Equity continues to leverage its cash holdings and the recent decrease in the valuation of technology companies to take up stakes in companies with enormous economic potential.
In the first half of 2022, the private equity and permanent capital portfolios of Vista Equity added 11 new portfolio companies and closed 18 add-on transactions across the Flagship, Foundation, Endeavor, and Perennial funds.
The acquisition of Duck Creek Technologies is a continuation of this strategy. Duck Creek is a pioneer in cloud-based mission-critical systems for the P&C insurance industry, providing a best-in-class customer experience. The company’s modern cloud architecture and demonstrated market traction position it to define the next generation of mission-critical technology for P&C insurance.
“Duck Creek is playing an outsized role in accelerating cloud strategies and unlocking all the advantages they provide this crucial sector of today’s economy,” Monti Saroya, senior managing director and co-head of Vista’s Flagship Fund, said. “We are excited to work with the Duck Creek team as we look to build on their best-in-class platform and solutions, which serve many of the world’s leading P&C insurance carriers.”
With this acquisition, Vista Equity Partners, under the leadership of Robert Smith, continues to solidify its position as a major player in the enterprise software and technology space and the insurance industry.
The acquisition of Duck Creek Technologies also highlights Smith’s business acumen as well as his leadership in the software industry and beyond. He has built a highly successful global investment firm and has a proven track record of identifying and investing in high-potential software and technology-enabled businesses.