Bain Capital is reportedly considering a deal to acquire CCC Intelligent Solutions Holdings, a car-insurance software provider controlled by Advent International.
The private equity firm is one of several potential buyers that have expressed interest in acquiring CCC, Bloomberg reported Thursday (Sept. 28), citing unnamed sources. However, no final decision has been made, and the companies could ultimately decide not to pursue a deal.
Reached by PYMNTS, a Bain Capital spokesperson declined to comment on the report. CCC did not immediately reply to PYMNTS’ request for comment.
CCC Intelligent Solutions provides software solutions to car insurers, repair shops, parts suppliers and other customers in the automotive sector, according to the report. Its software helps manage claims, estimate repair costs and provide other services related to car insurance.
The company went public in 2021 through a merger with a blank-check company and is currently majority-owned by Advent International, the report said.
If the deal goes through, it would be one of the largest buyouts of the year, per the report. Private equity deal-making has been on the rise recently, as interest rates stabilize and financing markets become more favorable. Other notable private equity deals include Roark Capital’s acquisition of Subway for $9.6 billion and GTCR’s purchase of Fidelity National Information Services Inc.’s payments arm for about $11.7 billion.
It was reported Sept. 17 that the private markets industry faces a “new phase of maturation and consolidation” due to rising interest rates, funding difficulties and increasing regulatory costs.
“It is really only the large players that can withstand the forces reshaping the private markets industry,” Partners Group CEO David Layton told the Financial Times (FT). “We could see the current 11,000 or so industry participants shrink to as few as 100 next-generation platforms that matter over the next decade.”
For its part, CCC is seeing that policyholders are demanding seamlessness when it comes to insurance. Similarly, carriers’ trading partners, including repair facilities and lenders, desire a smoother experience, Michael Boeke, vice president of payments product management at CCC, told PYMNTS in an interview posted in July. This has led carriers to embrace “intelligent automation.”
“A cloud approach provides access to a lot of automation and many of the advancements that are coming from other systems,” Boeke said. “It takes some of the burden of managing those connections off your plate.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.