Private equity firms GTCR and Elliott Investment Management acquired CCC Intelligent Solutions, a major collision repair software provider, for $6.1 billion, taking the company private with plans to invest in artificial intelligence and product development.
- GTCR and Elliott Investment Management purchased CCC Intelligent Solutions for $6.1 billion, announced October 15
- Shareholders receive $7.75 per share in cash, representing a 44% premium over the July 9 closing price
- CCC ONE software enables estimators to prepare estimates, manage parts options (OEM, aftermarket, recycled), and coordinate repair production
- Private equity buyers plan to increase investment in artificial intelligence and expand the customer network
- Deal expected to close in Q1 2027 pending shareholder approval and regulatory clearance
Private equity investors have struck a US$6.1 billion deal to buy one of the collision repair industry’s major software suppliers and take it off the stock market.
CCC Intelligent Solutions, the Chicago business behind CCC ONE estimating software, will pass to investors led by GTCR, a Chicago private equity firm. Elliott Investment Management, a Florida investment firm, is also participating.
The agreement, announced Oct. 15, gives shareholders US$7.75 in cash for each share. That is approximately 44% above the closing price July 9, before speculation about a sale.
The headline valuation includes debt.
The deal concerns software used throughout the repair process. With CCC ONE, estimators can prepare estimates, identify factory equipment and receive insurance assignments. Shop staff can also compare replacement parts, place orders and manage repair production.
Parts options include OEM, aftermarket and recycled components. Other tools connect estimating with invoices, scan reports and shop scheduling.
The buyers intend to put more money into product development and artificial intelligence.
“Our focus will be on helping CCC deliver better outcomes for its customers while supporting CCC’s next phase of growth,” said Mark Anderson, GTCR managing director and head of technology, media and telecommunications.
Githesh Ramamurthy, CCC chairman and CEO, said the agreement followed a review of strategic options. He said the investors’ backing would support further AI development, a larger business network and investment in employees.
Ramamurthy and CCC president Tim Welsh will retain a financial stake. Both have agreed to exchange some existing shares for ownership interests in the acquisition structure and vote their shares in favour of the transaction.
The merger agreement was signed Oct. 14. Directors present at the board meeting unanimously approved it and recommended that shareholders do the same.
Shareholder approval remains necessary. Holders of a majority of outstanding shares must support the agreement, and the transaction must clear regulatory requirements.
The buyers have arranged commitments for debt and equity financing. Their obligation to complete the purchase does not depend on securing financing later.
Directors can consider an unsolicited superior offer under specified conditions. However, accepting another deal could require a US$149.5 million termination payment. The buyers could owe approximately US$314 million if they fail to complete the transaction under certain circumstances.
Closing is expected in the first quarter of 2027. Until then, CCC will remain independently operated and its shares will continue trading on the Nasdaq.
After closing, shareholders will receive their cash and the business will become privately held.
