Acquisition brings together two leading
AI-powered platforms to revolutionize how claims are resolved for
insurers and claimants
CCC Intelligent Solutions Inc. (“CCC”), a leading cloud platform
provider powering the P&C insurance economy and a subsidiary of
CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS) (“CCCS”),
announced today that it has signed a definitive agreement to
acquire EvolutionIQ, Inc. (“EvolutionIQ”), the leading platform for
AI-powered guidance for disability and injury claims management.
The acquisition expands CCC’s market reach into strategic
adjacencies and strengthens its industry leading AI-powered SaaS
platform through the addition of transformative AI capabilities
that will work to revolutionize how insurance claims are
resolved.
CCC is an industry AI leader with more than 100 insurers and
thousands of collision repairers leveraging its computer vision,
natural language processing, and other AI solutions in processing
tens of millions of auto claims and repairs. CCC also provides a
comprehensive suite of SaaS solutions for managing auto casualty
claims, with tens of billions of dollars in injury claims processed
each year on the CCC platform.
EvolutionIQ has pioneered and operationalized the use of
AI-powered claims guidance and intelligent summarization, including
Next Best Action recommendations, to drive claims excellence within
disability and workers’ compensation carriers. Its market-leading
platform, which deciphers complexity and delivers actionable
insights to claims professionals, uniquely combines industrial-AI
with a proven and scalable SaaS business model. Since its founding
in 2019, EvolutionIQ has been delivering a significant, measurable
impact on claims performance to many of the largest insurers in the
U.S., while helping insurers get hundreds of thousands of injured
Americans back to work and their productive lives.
“Disability and injury claims are a large and growing part of
the insurance economy and have become increasingly complex to
manage and resolve,” said Githesh Ramamurthy, chairman and CEO,
CCC. “Acquiring EvolutionIQ adds proven, AI-powered injury claims
resolution capabilities to our existing auto casualty product suite
and accelerates CCC’s strategy of leveraging real-world AI to solve
complexity across the broader insurance ecosystem. We expect
EvolutionIQ’s Next Best Action capabilities and CCC’s connected
network and event-based architecture to deliver a transformational
leap forward for insurers and their ability to deeply integrate AI
into their existing workflows, a critical step in unlocking the
power and promise of AI for their business and their claimants’
experience.”
EvolutionIQ’s Claim Guidance platform uses AI to guide the Next
Best Actions for insurance professionals so they can more
effectively resolve injury claims in disability and workers’
compensation. EvolutionIQ’s Medical Summarization platform – which
supports all life, accident, and casualty lines of insurance –
offers Gen AI-powered intelligent summarization capabilities to
help insurers decipher mountains of medical documentation and
identify insights that accelerate decisions and drive Next Best
Actions, enhancing the expertise of the claims professionals who
use it.
“We are thrilled to enter this next phase of EvolutionIQ’s
growth as part of the CCC team,” said Michael Saltzman, co-founder
and co-CEO of EvolutionIQ. “Our unique team of world-class
insurance experts, data scientists, engineers, and customer success
professionals have built category-creating technology that’s
delivered tremendous value to our carrier customers, their employer
policyholders, and claimants, all because of the possibility to
accelerate return to health.”
Added Jonathan Lewin, EvolutionIQ co-founder and co-CEO, “CCC
and EvolutionIQ share a common focus on customers and the need to
bring solutions to market that empower more compassionate support
of claimants managing their recovery. We are energized by the
opportunity to continue this mission with CCC’s support so we can
further accelerate and scale our offerings for disability and
workers’ compensation insurers.”
“It is extremely rewarding to see our vision for empowering
insurers in their pursuit of claims excellence at scale reach new
heights,” said Tomas Vykruta, co-founder and president,
EvolutionIQ.
EvolutionIQ’s founders and team will become part of the broader
CCC team as part of the transaction, with a continued focus on
growing and expanding its core markets with support from CCC’s
operational infrastructure and installed base. CCC will continue to
advance its leadership position in the P&C insurance economy
and related markets by deploying select EvolutionIQ capabilities
across CCC’s customer base. This acquisition builds on the recently
introduced CCC Intelligent Experience Cloud™ platform, which
leverages an event-based architecture to enable new insights and
AI-powered workflows for the more than 35,000 companies in the CCC
network. By accelerating the shift to intelligent experiences, CCC
and EvolutionIQ will unlock new levels of simultaneous customer,
consumer, and employee value.
Added Ramamurthy, “We are incredibly impressed by the
EvolutionIQ team, and are excited to work alongside them as we
continue to transform how insurers resolve claims. Together, CCC
and EvolutionIQ will help insurers leverage AI more broadly to
deliver a profound improvement across injury claim resolution,
spanning auto casualty, disability, workers’ compensation, and
general liability lines of insurance. This acquisition is an
important step toward enabling our broader vision of making the
claims and repair experience just work for our customers and
theirs.”
Transaction Terms
Subject to the terms and conditions included in the definitive
agreement, CCC is expected to acquire EvolutionIQ for $730 million
to be paid for with a combination of approximately 40% CCCS common
stock and 60% cash to be funded through cash on balance sheet and
an additional $225 million term loan. The transaction is expected
to close in Q1 2025, subject to customary closing conditions.
CCC also announced that its Board of Directors has authorized a
share repurchase program of up to $300 million. The repurchase,
which will be funded out of available liquidity and free cash flow,
demonstrates CCC’s confidence in the future benefits of the
acquisition and underscores CCC’s commitment to driving shareholder
returns.
Advisors
J.P. Morgan and Citi are serving as financial advisers to CCC,
and Kirkland & Ellis LLP is serving as CCC’s legal advisor.
Lowenstein Sandler LLP is serving as EvolutionIQ’s legal
advisor.
Conference Call Information
CCC will host a conference call today, December 20, 2024, at
8:00 a.m. (Eastern Time) to discuss the transaction. A live webcast
of the call and an accompanying investor presentation will be
available on the “Investor Relations” page of CCC’s website at
https://ir.cccis.com, and a replay will be archived on the website
as well.
Learn more about EvolutionIQ at www.evolutionIQ.com.
About EvolutionIQ
EvolutionIQ pioneered Claims Guidance in 2019. Its explainable
AI guides insurance claims professionals to their highest potential
impact on claims, including specific Next Best Action guidance.
EvolutionIQ improves the claimant experience and delivers better
claim outcomes to claimants, carriers and their customers.
EvolutionIQ serves the group disability, individual disability, and
workers' compensation markets. EvolutionIQ's AI native products
have been adopted by 7 of the top 15 U.S. disability carriers and a
growing list of workers' compensation carriers. The New York-based
company employs almost 200 staff across the United States, Europe
and Australia. For more information, visit evolutioniq.com.
About CCC
CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC
Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), is a leading
cloud platform provider for the multi-trillion-dollar P&C
insurance economy, creating intelligent experiences for insurers,
repairers, automakers, part suppliers, and more. The CCC
Intelligent Experience (IX) Cloud™ platform, powered by proven AI
and an innovative event-based architecture, connects more than
35,000 businesses to power customized applications and platforms
for optimal outcomes and personalized experiences that just work.
Through purposeful innovation and the strength of its connections,
CCC technologies empower the people and industry relied upon to
keep lives moving forward when it matters most. Learn more about
CCC at www.cccis.com.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are
based on beliefs and assumptions and on information currently
available. In some cases, you can identify forward-looking
statements by the following words: “may,” “will,” “could,” “would,”
“should,” “expect,” “intend,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “project,” “potential,” “continue,”
“ongoing” or the negative of these terms or other comparable
terminology, although not all forward-looking statements contain
these words. These statements involve risks, uncertainties and
other factors that may cause actual results, levels of activity,
performance or achievements to be materially different from the
information expressed or implied by these forward-looking
statements. Forward-looking statements in this press release
include, but are not limited to, statements regarding future use
and performance of CCC’s and EvolutionIQ’s digital solutions, the
anticipated benefits of the transaction, expected synergies
resulting from the transaction, the expected timing to close the
transaction and the likelihood and ability of the parties to
successfully consummate the transaction. We cannot assure you that
the forward-looking statements in this press release will prove to
be accurate. These forward-looking statements are subject to a
number of risks and uncertainties, including, among others,
competition, including technological advances and new products
marketed by competitors; changes to applicable laws and
regulations; and other risks and uncertainties, including those
included under the header “Risk Factors” in CCC’s filings with the
Securities and Exchange Commission (“SEC”), including the Form 10-K
filed February 28, 2024, which can be obtained, without charge, at
the SEC’s website (www.sec.gov). The forward-looking statements in
this press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments will
cause our views to change. However, while we may elect to update
these forward-looking statements at some point in the future, we
have no current intention of doing so except to the extent required
by applicable law. You should, therefore, not rely on these
forward-looking statements as representing our views as of any date
subsequent to the date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241220225656/en/
Investor Contact: Bill Warmington VP, Investor Relations,
CCC Intelligent Solutions Inc. 312-229-2355 IR@cccis.com
Media Contact: Michelle Hellyar Senior Director,
Corporate Marketing, CCC Intelligent Solutions Inc.
mhellyar@cccis.com
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