(Reuters) — Duck Creek Technologies, which serves some of the biggest clients in the property/casualty sector, will be taken private by Vista Equity Partners in an all-cash deal valued at about $2.6 billion, the insurtech said on Monday.
The deal for Duck Creek at a purchase price of $19 per share represents a 46% premium to Duck Creek’s last close.
Shares in the company, which lost roughly 60% of their value last year, rose 44% to $18.73 in premarket trading after the deal was announced.
Duck Creek provides cloud-based property/casualty solutions to its clients, including Berkshire Hathaway Specialty Insurance and American International Group Inc.
Vista Equity is a global investment firm focused on enterprise software, data and technology-enabled companies.
Deal terms include a “go-shop”; period that ends on February 7; until then, the company’s board can request and consider alternative proposals.
Private equity firms have recently moved into the insurance sector to take advantage of defensive business models that fare better in times of economic uncertainty compared to other financial sectors.
Duck Creek expects the deal to close in the second quarter of this year. JP Morgan is acting as financial advisor to Duck Creek.