Duck Creek stock opened 50% up on Monday: here’s why
Duck Creek Technologies Inc (NASDAQ: DCT) opened nearly 50% up this morning after Vista Equity Partners said it will buy the insurance software company for $2.6 billion.
Details of the Duck Creek-Vista Equity deal
The agreement translates to $19 a share – about a 46% premium on DCT’s previous close.
Duck Creek now has until February 7th to look for a better proposal. In the press release, its CEO Michael Jackowski said:
Following a deliberate and thoughtful process, the Board approved this transaction which delivers a great outcome for Duck Creek’s shareholders, providing them a certain and substantial cash value at an attractive premium.
Last week, Duck Creek stock climbed after the Boston-headquartered firm reported better-than-expected results for its first financial quarter and issued upbeat guidance for the full year.
Duck Creek stock has gained 90% in two months
The announced transaction is expected to close in the second quarter of 2023 provided that it secures the shareholders and regulatory approval. CEO Jackowski added:
Duck Creek is proud to have pioneered cloud-based mission-critical systems for the P&C insurance industry to deliver a best-in-class customer experience. We’re excited to enter the next chapter in partnership with Vista Equity.
Vista Equity plans on funding the deal with fully committed equity financing. Once the acquisition is complete, Duck Creek stock will no longer be listed on Nasdaq.
Duck Creek has notable names like AIG and Berkshire Hathaway as customers. Following the rally today, the cloud stock is now up roughly 90% versus its low in early November.
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