CCC Information Services said on Wednesday it was going public through a merger with blank-check firm Dragoneer Growth Opportunities Corp, in a deal that valued the data and technology provider to auto and insurance firms at about $7 billion. The deal is expected to fetch CCC Information $968 million, including a $150 million private investment from Fidelity Investments, T. Rowe Price and others.
Funds associated with Dragoneer and billionaire Michael Bloomberg’s family office have also separately invested $175 million. The company, founded in 1980, allows insurance holders to get a repair estimate of damaged vehicles once they upload photos on its app. Nearly 300 U.S. insurers use its technology, according to the company’s website.
Shareholders of CCC Information are expected to own around 83.2% of the combined company and private equity firm Advent International, which bought the firm in 2017, would remain the single largest shareholder.
A special purpose acquisition company (SPAC), also known as a blank-check company, gained popularity as an alternative route to public markets last year, for companies seeking to avoid a traditional initial public offering.
Source: Reuters
Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli and Arun Koyyur
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