On a day when two core systems companies joined, the telematics corner of the insurance tech industry got in on the M&A fun as well.
DriveFactor, a provider of telematics-powered usage-based insurance services for insurance and fleet clients, has been acquired by CCC Information Services, which provides collision- and claims-related software to insurance companies and auto repair shops.
The companies will attempt to "create the first full-service, open telematics platform for auto insurance," according to a statement announcing the buy.
“DriveFactor’s technology provides superior flexibility and data quality for underwriting and marketing, and by integrating telematics data into existing claims operations carriers will have the first full-service solution to satisfy their policyholders and improve efficiency," said Marc Fredman, Senior Vice President of Corporate Strategy & Development, CCC. "We’re excited to welcome the DriveFactor team to the CCC family and look forward to working together to bring sustained innovation to customers.”
Steve McKay, DriveFactor founder and former Progressive telematics executive, added: "To realize the promise of telematics and stay ahead of the curve, carriers will need to access an array of technologies from OEM systems to device and service providers. A full-service, open platform delivers choice and scale to carriers as their needs in telematics grow and change. I’m excited by the data, expertise, and network that CCC will bring to our customers.”
Terms of the deal were not disclosed. Fairmount Partners advised DriveFactor on the transaction.
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