CCC Intelligent Solutions (Chicago), a provider of a SaaS platform for the property and casualty insurance industry, and Dragoneer Investment Group (San Francisco) have announced the completion of the business combination of CCC and Dragoneer Growth Opportunities Corp., a special purpose acquisition company formed by Dragoneer Investment Group as of July 30, 2021. In connection with the closing of the Business Combination, CCC has received net proceeds of approximately $605 million, the firms’ announcement says. The net proceeds from the Business Combination will be put towards CCC’s balance sheet, including repayment of debt.
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The Business Combination was approved by Dragoneer shareholders at a special meeting held July 29, 2021. Starting August 2, 2021, the common stock and warrants of the combined company, CCC Intelligent Solutions Holdings Inc., will be listed on the New York Stock Exchange under the ticker symbols “CCCS” and “CCCS WS,” respectively.
The auto insurance claims ecosytem now has more and different critical players than ever before including insurers, collision repairers, OEMs, parts suppliers plus thousands of other partners and claims services providers, according to Stephen Applebaum, Managing Partner, Insurance Solutions Group (Chicago). “Meeting the service expectations of today’s ‘new consumers’ to achieve near real-time straight through claims processing will require a unique combination of expertise, data, relationships and resources,” he comments. “CCC Intelligent Solutions, bolstered by Dragoneer’s new investment and partnership, will enable that to become a reality for the benefit of all—including consumers”
Since the announcement of the Business Combination on February 3, 2021, CCC has announced plans for what it calls “important new solutions” that will support the property/casualty insurance economy’s ongoing digital transformation and vision to achieve straight through processing (STP). Highlights include:
- Plans to launch an enterprise payments platform to power electronic payments through integration with a payment processor across the insurance and automotive ecosystem in the second half of 2021.
- Plans to fully digitize the estimating process for a portion of repairable claims with the launch of CCC Estimate – STP in the second half of 2021. The new solution is designed to employ advanced AI, insurer-driven rules and CCC’s network connections and is expected to help customers realize automated estimating in mere minutes and elevate the customer experience.
- Plans to incorporate advanced AI into its CCC ONE collision repair platform later this quarter to apply machine learning to pre-populate estimates based on photos of vehicle damage and configurations by repair facilities to accelerate the repair process.
Enabling Acceleration of Innovation
“The closing of our Business Combination and our return to the public markets is an exciting day for CCC and our over 2,000 employees,” comments Githesh Ramamurthy, Chairman and CEO, CCC. “The team is energized about our next phase of growth and focused on delivering game-changing innovations to our more than 30,000 customers across the P&C insurance economy. The proceeds from this transaction allow us to accelerate innovation that helps our customers increase revenue, improve efficiency and improve the lives of millions of drivers.”
“This is an important time for the industry, which is actively adopting technologies like AI, IoT and mobile to digitize operations and modernize the customer experience from start to finish,” Ramamurthy adds. “CCC’s market leadership puts us in an excellent position to deliver on this long-term vision, powering our customers forward and achieving our long-term growth objectives.”
“This is an exciting moment, not just for CCC, but for the broader P&C insurance economy,” comments Mark Stad, Founder and Portfolio Manager, Dragoneer. “Already a pioneer at the forefront of the industry’s rapid movement towards digitization, we expect that the additional capital from this transaction will enable CCC to accelerate its innovation, find new ways to create value for its customers and further revolutionize the P&C insurance space. We can’t wait to see what Githesh and the CCC team are able to accomplish in the public markets for their customers and the consumers they serve.”
Citigroup Global Markets Inc. acted as lead capital markets advisor to Dragoneer, in conjunction with capital markets advisors Goldman Sachs & Co., LLC and JP Morgan Securities LLC. Ropes & Gray LLP acted as legal counsel to Dragoneer. Evercore Group L.L.C. acted as financial advisor and capital markets advisor to CCC. Kirkland & Ellis LLP acted as legal counsel to CCC and Advent. Citigroup Global Markets Inc. acted as lead placement agent and Evercore Group L.L.C. as placement agent on the PIPE. Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC acted as book-running managers on Dragoneer’s $690 million initial public offering.
Source: Insurance Innovation Reporter
