(July 11): Elliott Investment Management has built a large stake in car-insurance software provider CCC Intelligent Solutions Holdings Inc, which has been exploring a potential sale, according to people familiar with the matter.
The engagement with the company is being led by investors from Elliott’s private equity business, said the people, asking to not be identified because the details aren’t public. The size of Elliott’s investment couldn’t be learned.
Elliott took the stake before CCC decided to work with an adviser to explore a potential sale, the people said. CCC’s deliberations are early and there’s no certainty they’ll result in a sale, the people said.
A representatives for CCC couldn’t immediately be reached for comment. A representative for Elliott declined to comment.
CCC rose 10% to close at US$5.92 in New York trading Friday, giving the company a market value of about US$3.5 billion. The stock has fallen 39% in the past year. Reuters first reported on the sale process.
It was worth about US$7 billion when it went public in 2021 via a merger with a blank cheque company. Advent International had purchased the company in 2017 and sold its remaining stake last year.
CCC makes software for the car insurance industry to help process auto claims and repairs. It weighed a sale in 2023 and attracted interest from private equity firms Bain Capital and TPG Inc, Bloomberg News reported at the time.
Elliott is best known for being an activist investor that takes stakes in some of the world’s biggest companies and pushes for changes. The firm’s strategies also span credit, commodities, real estate and private equity.
It’s been involved in private equity buyouts for more than a decade. In 2023, it retired its Evergreen Coast brand for its private equity investment to avoid confusion and under retired score how private equity is integrated with the rest of the firm.
Some of its private equity investments include Cloud Software Group, Barnes & Noble Inc, Syneos Health and Nielsen Holdings.
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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.