Accenture to Expand Property and Casualty (P&C) Insurance Software Capabilities with Acquisition of Duck Creek Technologies
Following acquisition, Accenture will offer a comprehensive,
industry-leading P&C software platform
NEW YORK; July 14, 2011 – Accenture (NYSE:ACN) has entered into an agreement to acquire Duck Creek Technologies, a privately held company that specializes in software solutions for the property and casualty (P&C) insurance industry.
Upon closing, the acquisition will strengthen Accenture’s capabilities to support P&C insurers of all sizes. It will enhance Accenture’s ability to help insurers react faster to changing market conditions, quickly launch products that match consumers’ evolving needs, and improve customer satisfaction, while reducing operating costs. Terms of the transaction, which is expected to close within the next 30 days, were not disclosed.
The acquisition will complement Accenture Software’s existing P&C, component-based software platforms and will give Accenture an industry-leading suite of software with one of the most comprehensive spectrums of processing capabilities for the P&C insurance market — from product configuration and definition to policy management, including underwriting, billing, rating, ISO-based products support and claims management.
“Duck Creek is a leader in the P&C policy administration market as demonstrated by its customer base and its sales momentum,” said John DelSanto, global managing director of Accenture's Insurance practice. “This acquisition further demonstrates Accenture’s ongoing commitment to providing differentiated software platforms for the insurance industry, supported by valuable and cost-effective software maintenance and upgrade services. It also will reinforce our presence in the marketplace while expanding our offerings to significantly more clients, including in the mid-market. Accenture is committed to improving the business performance of insurers through Accenture P&C Services, and we will continue to enhance our P&C software platforms and services to position our clients for success across all their lines of business.”
Colin Davies, global managing director of Accenture Software, said, “Insurers want software that meets their customers’ needs and supports the scale and strategic objectives of their organizations. This acquisition will enable Accenture to provide insurers with a leading, comprehensive component-based P&C software platform, with modules that can be implemented individually or collectively as part of a broader migration strategy, while reducing the total cost of ownership. In addition, Duck Creek’s solutions are built upon the same Microsoft .NET technology as Accenture’s existing P&C software platforms, which will facilitate rapid integration of the applications.”
Duck Creek was founded in 2000 in Bolivar, Missouri, and has grown to serve more than 60 clients in North America and the UK, processing all commercial, personal, and specialty lines of business. Duck Creek employees include some of the most experienced professionals in the insurance solution software industry. Duck Creek also has offices in Columbia, South Carolina; Farmington, Connecticut; and Surrey, United Kingdom.
“The combination of Duck Creek’s and Accenture’s P&C software will create one of the most robust and comprehensive platforms available in the market,” said Steve Hall, president and CEO of Duck Creek. “The two companies will bring together a powerful set of industry skills, technology services and implementation capabilities for P&C insurance clients, who will also benefit from additional experience, scale and R&D investment. By joining Accenture, we will bolster our continued commitment to our customers and the insurance industry.”
Accenture Property & Casualty Insurance Services, a business service within Accenture’s Financial Services operating group, serves more than 70 property and casualty insurance clients worldwide.
Duck Creek Technologies was advised by Spurrier Capital Partners, a technology-focused M&A advisory firm based in New York.
Accenture is a global management consulting, technology services and outsourcing company, with more than 223,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.
Accenture Software combines deep technology acumen with industry knowledge to develop differentiated software products. It offers innovative software-based solutions to enable organizations to meet their business goals and achieve high performance. Its home page is www.accenture.com/software.
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company and Duck Creek will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions, including obtaining any required regulatory approvals; the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by negative or uncertain economic or geopolitical conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to changes in technology and client demand; the consulting and outsourcing markets are highly competitive and the company might not be able to compete effectively; work with government clients exposes the company to additional risks inherent in the government contracting environment, including risks related to governmental budget and debt constraints; clients may not be satisfied with the company’s services; results of operations could be materially adversely affected if clients terminate their contracts with the company; outsourcing services are a significant part of the company’s business and subject the company to additional operational and financial risk; results of operations could materially suffer if the company is not able to obtain favorable pricing; if the company is unable to keep its supply of skills and resources in balance with client demand around the world, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the company’s business could be materially adversely affected if it incurs legal liability in connection with providing its services and solutions; if the company’s pricing estimates do not accurately anticipate the cost and complexity of performing work, then the company’s contracts could be unprofitable; many of the company’s contracts include performance payments that link some of the company’s fees to the attainment of performance or business targets and this could increase the variability of the company’s revenues and margins; the company’s ability to attract and retain business may depend on its reputation in the marketplace; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; revenues, revenue growth and earnings in U.S. dollars may be lower if the U.S. dollar strengthens against other currencies, particularly the Euro and British pound; the company could have liability or the company’s reputation could be damaged if the company fails to protect client data and company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company could be subject to liabilities or damage to its relationships with clients if subcontractors or the third parties with whom the company partners cannot meet their commitments on time or at all; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; changes in the company’s level of taxes, and audits, investigations and tax proceedings, could have a material adverse effect on the company’s results of operations and financial condition; the company’s profitability could suffer if its cost-management strategies are unsuccessful; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company may be subject to criticism, negative publicity and legislative or regulatory action related to its incorporation in Ireland; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; the company may not be successful at identifying, acquiring or integrating other businesses; consolidation in the industries the company serves could adversely affect its business; the company’s share price could fluctuate and be difficult to predict; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
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