Funds advised by Apax Partners complete purchase of majority stake in Duck Creek Technologies from Accenture
2nd August 2016
Apax Funds advised by Apax Partners have completed the acquisition of a majority stake in Duck Creek Technologies from Accenture. As part of the agreement, which wasFunds advised by Apax Partners have completed the acquisition of a majority stake in Duck Creek Technologies from Accenture. As part of the agreement, which was originally announced on April 18, Apax and Accenture have formed a joint venture in which Apax funds hold a 60 percent stake in Duck Creek Technologies, and Accenture retains a 40 percent stake.
Accenture maintains 40 percent ownership of Duck Creek; Accenture and Duck Creek will collaborate on development of Internet of Things, Big Data analytics, other emerging digital technologies for insurers
NEW YORK and LONDON; August 2, 2016 – Funds advised by Apax Partners have completed the acquisition of a majority stake in Duck Creek Technologies from Accenture (NYSE: ACN). As part of the agreement, which was originally announced on April 18, Apax and Accenture have formed a joint venture in which Apax funds hold a 60 percent stake in Duck Creek Technologies, and Accenture retains a 40 percent stake. Duck Creek will leverage new access to capital to accelerate development and expansion of property and casualty (P&C) insurance technologies.
Funds advised by Apax completed their acquisition of a majority stake in Duck Creek Technologies concurrent to completing its acquisition of Agencyport, announced June 1. Agencyport, a leader in digital distribution technologies connecting P&C insurers with their agents and brokers, will be an integral part of Duck Creek Technologies.
“This marks the beginning of an important new period of insurance technology development,” said Jason Wright, a partner at Apax. “You will see game-changing innovations in the insurance sector, as we provide growing investment support to the distinguished management team of this innovative joint venture with Accenture.”
As part of the agreement, Accenture will collaborate with Duck Creek to enable insurers to take advantage of the Internet of Things, Big Data analytics and other emerging technologies. Accenture is also a Platinum Premier delivery partner for Duck Creek, and Duck Creek is a preferred technology partner for P&C insurance. All of Duck Creek’s senior management team and approximately 1,000 insurance software and technology personnel from Accenture have transferred to the new company.
“As new and revolutionary digital technologies emerge, insurers will be pressed to modernize their core systems in order to support a new generation of services and capabilities,” said John Cusano, senior managing director of Accenture’s insurance practice. “Carriers that master both sides of this technology equation will be well positioned to compete in the future. The combination of our Duck Creek joint venture and our strong forward focus on digital technologies and services offers our clients differentiated capabilities that can enable market advantage.”
Michael A. Jackowski, chief executive officer of Duck Creek Technologies, said: “We have opened the door to important new opportunities for growth and development as a joint venture and independent company. Our relationship to Apax provides new access to investment capital, and our continued close relationship with Accenture provides continuity of the digital capabilities and services that are important to many of our clients.”
About Apax Partners LLP
Apax Partners LLP is a leading global private equity advisory firm. Over its more than 30-year history, Apax Partners has raised and advised funds with aggregate commitments in excess of $45 billion*. Funds advised by Apax Partners invest in companies across four global sectors of Tech and Telco, Services, Health Care and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax Partners, please visit www.apax.com.
Apax funds have been one of the most active private equity investors in the software sector, having invested over $2.5 billion in equity since 2008. Apax’s deep sector expertise and global resources have helped accelerate organic and inorganic growth within its software portfolio and have enabled geographic expansion. Current and past software investments include Epicor, Activant, TriZetto (sold to Cognizant), Aptos, Exact, Paradigm, Sophos (London: SOPH) and RealPage (NASDAQ: RP). For further information about Apax Partners, please visit www.apax.com.
* Funds raised since 1981, commitments converted from fund currency to USD at FX rates as at June 30, 2016.
About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
About Duck Creek Technologies
Duck Creek Technologies LLC, an Accenture company, is a leading provider of comprehensive P&C insurance software and services delivered on-premise or via Duck Creek On-Demand, a Software as a Service model. The wholly owned subsidiary of Accenture delivers configurable software that is designed to work independently or as a combined approach to quickly and seamlessly handle the unique needs of insurers of all sizes. Our technology solutions enable clients to optimize outcomes through streamlined operations, shared data, and consistent functionality. For more information, visitwww.duckcreek.com.
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Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the markets in which the company competes are highly competitive, and the company might not be able to compete effectively; 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the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; the company’s business could be materially adversely affected if the company incurs legal liability; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company might not be successful at identifying, acquiring or integrating businesses, entering into joint ventures or divesting businesses; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; changes in the company’s level of taxes, as well as audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to the company’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
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Contacts:
Alex Wessendorff
Apax Partners
+ 44 20 7872 6461
alex.wessendorff@apax.com
James Murphy
Accenture
+1 917 452 0588
james.p.murphy@accenture.com
Ashley Capuzzi
Duck Creek Technologies
+1 484 221 0425
ashley.capuzzi@duckcreek.com