PE Agency Creation Eyes Sale of Automotive Insurance coverage Software program Vendor CCC: Sources

Non-public fairness agency Creation Worldwide is exploring a sale of CCC Clever Options Holdings Inc., a supplier of software program to the automobile insurance coverage business that has a market worth of $7.1 billion, folks acquainted with the matter stated on Friday.

Funding financial institution Morgan Stanley is advising CCC on its talks with potential acquirers, which embody different buyout companies, the sources stated, including that no deal is for certain.

CCC representatives didn’t instantly reply to a request for remark, whereas Creation, which holds a 56% stake within the firm, declined to remark. Morgan Stanley didn’t instantly reply to a request for remark.

CCC shares jumped on the information in afterhours buying and selling in New York on Friday, rising 8.6% to $12.50.

Based in 1980, CCC gives software program to 35,0000 corporations concerned in automotive claims and collision restore, together with insurance coverage companies, elements suppliers and automobile producers.

Creation, which acquired CCC from personal fairness companies TPG Inc. and Leonard Inexperienced & Companions in 2017, took CCC public by means of a merger with a blank-check firm in 2021 at a $6.5 billion fairness valuation.

CCC shares have risen 32% year-to-date, greater than the broader market however lower than the S&P 500 software program utility index, which has risen 43%. CCC suffered from a drop in automobile insurance coverage claims through the COVID-19 pandemic however has since seen enterprise steadily get well.

CCC reported complete income of $211.7 million for the second quarter of 2023, up 10% from $192.8 million a 12 months earlier. Adjusted gross revenue was $162.0 million, in contrast with $148.4 million a 12 months in the past.

(Reporting by Milana Vinn in New York; modifying by Diane Craft)

Matters
Auto