CCC Information Services Inc. of Chicago and Mitchell International Inc. of San Diego announced they have signed a definitive agreement under which they will combine in a merger-of-equals transaction valued at $1.4 billion.
CCC and Mitchell are each privately held. The combined enterprise, which will be known as CCC-Mitchell Inc., will provide information, workflow management systems and integrated software to insurance companies and collision repair facilities. The company’s data, software and services will support the estimating and processing of claims for auto physical damage and bodily injury. At inception, CCC-Mitchell will have annual sales of approximately $460 million and approximately 2,000 employees.
Githesh Ramamurthy, chairman and CEO of CCC, said: “Our customers are under increasing pressure to achieve new levels of efficiency and customer satisfaction, which requires their service providers to offer new and enhanced products, services and solutions. CCC-Mitchell will be positioned to meet these needs as we bring together our two talented teams to create greater value for our customers and business partners through increased innovation and network connectivity.”
The combined company is expected to have:
-An expanded communication network to deliver greater connectivity between insurers, repair facilities, and other industry service providers and suppliers;
-Expanded research and development resources and a greater ability to enhance current products and services, deliver new technology-based claims solutions, and provide faster time-to-market product delivery;
-An expanded sales and service organization;
-A larger, more comprehensive data warehouse to deliver industry insights through benchmarking, data analytics and predictive modeling; and
-A broad portfolio of claims and collision repair solutions from one provider.
Under the agreement, which was unanimously approved by the boards of directors of both companies, Mitchell and CCC will merge in a stock-for-stock exchange. Ownership and board seats will be held equally by Aurora Capital Group, the private equity sponsor of Mitchell, and Investcorp, the private equity sponsor of CCC. In addition, CCC-Mitchell management will have a significant stake in the combined enterprise.
Ramamurthy, currently chairman and CEO of CCC, will become the CEO of the combined company. Alex Sun, president and CEO of Mitchell, will serve as president of CCC-Mitchell.
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