Though the two largest software merger and acquisitions (M&A) transactions of 2008 were insurance-related, such activity in financial services dropped in 2008, according to Berkery Noyes, an advisory and financial consulting services firm specializing in M&A.
The largest transaction announced in 2008 was CCC Information Services Inc., a portfolio business of Investcorp, proposed acquisition of Mitchell International Inc., a subsidiary of Aurora Capital Group, for $1.40 billion. The proposition stirred up some controversy with the Federal Trade Commission’s (FTC) intent to oppose the merger.
As it stands, CCC and Mitchell have reiterated their commitment to the value of the proposed merger and the competitive industry in which they serve, and intend to contest the action taken by the FTC, according to a press release from CCC.
The second largest activity, Berkey Noyes reports, was Apax Partners’ purchase of TriZetto Group Inc.
“TriZetto remains singularly focused on developing high-return software and services for payers and their constituents in the healthcare supply chain,” Jeff Margolis, who continues as chairman and CEO of the TriZetto Group, said in August 2008. “We look forward to more strongly partnering with our customers, while leveraging Apax’s resources and international reach to further accelerate our solutions development and growth.”
According to Berkery Noyes’ 2009 Software Industry M&A Trends Report, the overall transaction volume in all industries decreased by 12% last year from the 2007 level, while aggregate transaction value decreased by 51%, reflecting fewer large-scale transactions in favor of middle-market deals.
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