Chicago’s Insurance IT firm CCC Information to go public via $7bn SPAC deal

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Chicago’s Insurance IT firm CCC Information to go public via $7bn SPAC deal

CCC Information, the Chicago, Illinois-based big data company that mostly offers its services for US insurers, had issued a statement later this week saying that the insurance IT firm and software developer, would go public through a merger with a blank-check firm Dragoneer Growth Opportunities Corp.

in a deal that might value the company at an approximated $7 billion. Aside from that, CCC Information, the Chicago-based technology and big data services provider to auto and insurance firms, had also added in the statement that a planned merger with the SPAC (Special Purpose Acquisition Company), Dragoneer Growth Opportunities Corp., would provide the insurance IT firm with a stark upsum of $968 million in fresh capitals including a $150 million in private investments from T.

Rowe Price, Fidelity Investments alongside others. Besides, funds associated with Dragoneer, the NYSE-listed SPAC founded by Marc Stad and Pat D. Robertson in July last year, alongside billionaire investor Michale Bloomberg’s family office had separately invested $175 million.

Nevertheless, SPAC or blank-check companies are shell entities that could be used to take a company public following a merger or acquisition, while SPACs are allowed to raise funds through IPOs or private investments in order to finance the mergers or acquisitions without telling their investors about the firm they are pursuing.

CCC Information to go public through SPAC merger, values at $7 billion

Apart from that, under the financial terms of the deal, stakeholders of CCC Information would own around 83.2 per cent of the merged enterprise alongside private equity firm Advent International that had bought the insurance IT company back in the 2017, while Advent International would remain the single largest shareholder of the entity.

Founded back in the 1980s, CCC Information has been offering insurance holders a repair-estimate of damaged vehicles after uploading their vehicles’ images at its app, while more than 300 US insurers are reportedly using CCC Information’s technology.