Accenture has sold a 60% stake in Duck Creek, the insurance core systems vendor it acquired in 2011, to private equity firm Apax Partners.
Under the terms of the agreement, Duck Creek Technologies -- a change from its former name, Accenture Duck Creek -- will operate as an independent joint venture of Accenture and Apax. Accenture says the financial backing of the private equity firm Apax will allow Duck Creek more resources for its core mission, while allowing Accenture to focus on more horizontal projects.
However, Accenture still has a real interest in the P&C insurance industry, the company says.
"It's not an exit," says John Cusano, senior managing director of Accenture’s global insurance practice. "Apax is bringing an aspiration to build out a broader tech vertical in the P&C industry, but we will have a tight go to market alliance with the new company."
Accenture is working on analytics and Internet of Things platforms that it wants to fully integrate with Duck Creek going forward, Cusano says. For its part, Duck Creek is set to launch some other non-core-systems offerings, including a data management suite and customer orientation system.
Duck Creek is also looking to the cloud for growth with a new software-as-a-service platform on the way, says Mike Jackowski, company president.
"We think the joint venture construct allows us to really maximize what we think is the best for Duck Creek in terms of some of these leading assets," Jackowski says. "We'll be partnering with Accenture on related products, notably in the digital analytics and Internet of Things arena."
In addition to collaboration on next-generation technologies, Accenture will also work as a systems integrator and consulting partner on Duck Creek's behalf.
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