CCC Information Svs., Mitchell International Merging

CCC Information Services Inc., of Chicago, Ill., and Mitchell International, Inc., of San Diego, Calif., reported the signing of a definitive agreement under which they will combine in a merger-of-equals transaction valued at $1.4 billion.

CCC and Mitchell are each privately held. The combined enterprise, which will be known as CCC-Mitchell Inc., will be a provider of information, workflow management systems and integrated software to insurance companies and collision repair facilities. The company’s data, software and services will support the estimating and processing of claims for auto physical damage and bodily injury. At inception, CCC-Mitchell will have annual sales of approximately $460 million and approximately 2,000 employees.

Among the reported customer benefits of the transaction, the combined company will have:

• An expanded communication network to deliver greater connectivity between insurers, repair facilities, and other industry service providers and suppliers;
• Expanded Research & Development resources and a greater ability to enhance current products and services, deliver new technology-based claims solutions, and provide faster time-to-market product delivery;
• An expanded sales and service organization, providing broader and better customer service across North America;
• A larger, more comprehensive data warehouse that will improve the company’s ability to deliver industry insights through benchmarking, data analytics and predictive modeling; and
• A broad and widely used portfolio of claims and collision repair solutions from one provider.

Under the agreement, which was unanimously approved by the Boards of Directors of both companies, Mitchell and CCC will merge in a stock-for-stock exchange. Ownership and board seats will be held equally by Aurora Capital Group, the private equity sponsor of Mitchell, and Investcorp, the private equity sponsor of CCC. In addition, CCC-Mitchell management will have a significant stake in the combined enterprise.

Given the geographic distribution of the companies’ respective workforces and customers, as well as the companies’ ability to connect through their existing systems, it is anticipated that CCC-Mitchell will operate from multiple locations while maintaining a significant presence in both San Diego and Chicago.

Completion of the transaction is expected to occur immediately following completion of regulatory review and satisfaction of customary closing conditions.