The sale of car insurance industry software firm CCC Intelligent Solutions is reportedly in limbo.
According to published reports Tuesday (Oct. 24), sources familiar with the matter say CCC owner Advent International, a private equity firm, halted the proceedings after parties couldn’t agree on a price.
Bain Capital, which — as noted here — had expressed interest in buying CCC last month, has apparently left the discussions. Reached by PYMNTS, Advent International declined to comment.
As noted here last month, Bain’s purchase would have marked one of the largest buyouts of the year. This week also saw a similar deal be put on hold with reports that private equity firms Blackstone and Permira were reconsidering plans to acquire Oslo-based online classifieds company Adevinta.
That purchase, which likewise would have been one of the year’s biggest buyouts, was being taken back to the investment committees of the firms for more discussion, Bloomberg reported Sunday (Oct. 22), per unnamed sources.
CCC provides software solutions to car insurers, auto repair shops, parts suppliers and other automotive sector customers. Its software helps manage claims, estimate repair costs and provide other insurance-related services.
In an interview with PYMNTS in July, Michael Boeke, vice president of payments product management at CCC, said that policyholders are demanding seamlessness when it comes to insurance, while carriers’ trading partners, including repair facilities and lenders, are looking for a smoother experience.
This, he told PYMNTS, 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.”
He also noted that “payments can look pretty different depending on where a carrier is in terms of their digital journey.”
Carriers that are just starting out on that journey are still moving large volumes of paper checks, he explained, compared to those that are further ahead in their digital transformation.
“The carriers that are sending out a lot of paper checks are still relying on legacy vendors, banks and payments providers, and they’re likely incurring some hidden costs caused by their systems not being well connected to the rest of their claims lifecycle,” Boeke said.
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