Insurance tech company Duck Creek Technologies has reached a takeover deal with Vista Equity Partners, sending its stock soaring on Monday morning.
Terms of the pact call for Vista to pay $19 per share in cash, or about $2.6 billion. Shares of Duck Creek surged about 46.5% to $19.03, moving above the offer price.
The deal is at a 46% premium to Friday's close of $12.99. The move was first reported by CNBC's David Faber.
The agreement still represents a big discount to the heights that Duck Creek had previously reached. Duck Creek went public in August 2020 at $27 a share, and at its high-water mark in February 2021, Duck Creek closed above $59 per share.
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A provider of enterprise software property and casualty insurers, Duck Creek later saw its stock price fall about 60% in 2022 as investors turned away from former high-growth areas.
Duck Creek will be part of a wider portfolio of technology companies at Vista. The companies said in a press release that the deal is expected to close in the second quarter of this year.
"Duck Creek is playing an outsized role in accelerating cloud strategies and unlocking all the advantages they provide this crucial sector of today's economy," Monti Saroya, senior managing director and co-head of Vista's Flagship Fund, said in a statement.
Money Report
Duck Creek reported its fiscal first-quarter results last week, showing revenue of $80.6 million and a net loss of $5.2 million.
Correction: The deal is at a 46% premium to Friday's close of $12.99. An earlier version misstated the figures.
