Boston-based Duck Creek, a SaaS-based software provider for the property and casualty (P&C) insurance sector, went public back in 2020, initially hitting a market cap of around $5 billion. After peaking at around $7 billion in early 2021, Duck Creek's fortunes have fallen somewhat, with its valuation plummeting to below $2 billion over the past year, with a closing price of around $13 per share as of Friday.
Vista's $19 per-share offer represents a 46% premium on Duck Creek's most recent market closing price, and a 64% premium on its volume-weighted average price (VWAP) over the previous 30 days, equating to $2.6 billion, which Vista said it will pay in an all-cash transaction.
It's worth noting that Vista has been at the center of some of the biggest enterprise deals over the past year, including Citrix, which Vista partnered with Evergreen/Elliott on to acquire for $16.5 billion. Vista also snapped up automated tax compliance company Avalara for $8.4 billion, while it sold disaster recovery company Datto for $6.2 billion.
"Vista has an established track record of partnering with leading enterprise software businesses within the insurance industry and related verticals," Vista managing director Jeff Wilson said in a press release. "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."
Vista said that it expects to conclude the transaction in Q2 2023.