CCC Intelligent Solutions Inc. has taken a significant step by signing a formal agreement to acquire EvolutionIQ Inc., a platform renowned for its innovative artificial intelligence solutions in the realm of disability and injury claims management.
Acquisition Details
The deal is valued at approximately $730 million, with financing expected to consist of around 40% in common stock from CCC and 60% paid in cash.
This cash portion will be drawn from current financial reserves along with a $225 million term loan.
The transaction is slated for completion in the first quarter of 2025, contingent upon standard closing conditions being met.
Strategic Initiatives
In a strategic move aligned with this acquisition, CCC’s board of directors has also greenlit a $300 million share buyback program.
This initiative will utilize available liquidity and free cash flow, reflecting the company’s confidence in the benefits that the acquisition of EvolutionIQ will bring, as well as its commitment to driving shareholder value.
Company Background
As a result of this acquisition, EvolutionIQ’s founding team and employees will be welcomed into the broader CCC organization, enhancing the integrative capabilities of both entities.
CCC Intelligent Solutions serves as a cloud platform provider tailored for the property and casualty insurance industry.
It operates as a subsidiary of CCC Intelligent Solutions Holdings Inc., leveraging cutting-edge natural language processing (NLP) technology to deliver innovative solutions.
Source: Claimsjournal
