CCC Information Services Group Inc. Announces Agreement to Be Acquired by Investcorp; CCC Stockholders to Receive $26.50 Per Sha
September 22 2005 - 8:00AM
Business Wire
CCC Information Services Group Inc. (Nasdaq:CCCG), a leading
supplier of advanced software, communications systems, Internet and
wireless-enabled technology solutions to the automotive claims and
collision repair industries, announced today that it has signed a
definitive agreement to be acquired by an affiliate of Investcorp,
the global investment group. Under the terms of the agreement, CCC
stockholders will receive $26.50 in cash for each share of CCC
common stock, representing a 10.3% premium over the average closing
price of CCC's stock for the last 90 trading days. The fully
diluted equity value of the transaction is approximately $495
million. "This transaction delivers excellent value to CCC
Information Services stockholders, and we look forward to pursuing
with Investcorp a range of opportunities that lie ahead for our
Company," said Githesh Ramamurthy, Chairman and CEO of CCC. "The
successful completion of this transaction, combined with our tender
offer in 2004, will result in our having returned approximately
$700 million to our stockholders. This transaction represents an
endorsement of the success of CCC's business, and our ongoing
commitment to provide our customers with significant value." "CCC
is the recognized leader in its market, with outstanding products
and services and a strong management team," said Christopher
Stadler, Investcorp's Head of Corporate Investments for North
America. "We look forward to working with the CCC team, led by
Githesh Ramamurthy, to continue to create value for CCC's customers
and to pursue the opportunities for growth we see in existing
business lines and new products and customer solutions." CCC will
continue to be headquartered in Chicago and led by the current
management team, including Mr. Ramamurthy as CEO. The merger
agreement has been unanimously approved by the Board of Directors
of CCC. In addition, CCC's two largest stockholders have agreed to
vote shares in favor of the transaction representing approximately
30% of the voting power of the Company's outstanding shares.
Specifically, White River Ventures, Inc. has agreed to vote a total
of 4,751,735 shares of CCC Common Stock, and Capricorn Investors
III, L.P. has agreed to vote its 51 shares of Series F Preferred
Stock. The transaction is expected to close during the fourth
quarter of 2005, subject to various conditions, including approval
of the transaction by CCC's stockholders and the expiration of the
applicable waiting period under the Hart-Scott-Rodino Act. The
definitive agreement includes customary provisions permitting CCC's
board to receive and accept an alternative proposal if that
proposal is more favorable to the Company's stockholders and
reasonably capable of being completed, subject to expense
reimbursement and payment of a termination fee. Credit Suisse First
Boston LLC acted as financial advisor to CCC. Latham & Watkins
LLP acted as legal advisor to CCC and Gibson Dunn & Crutcher
LLP acted as legal advisor to Investcorp. O'Melveny & Myers LLP
acted as legal advisor to Capricorn Investors II and III, L.P.
Important Additional Information Will be Filed with the SEC CCC
plans to file with the SEC and mail to its stockholders a Proxy
Statement in connection with the transaction. Investors and
stockholders are urged to read the Proxy Statement carefully when
it becomes available because it will contain important information
about CCC, the transaction and related matters. Investors and
security holders will be able to obtain free copies of the Proxy
Statement and other documents filed with the SEC by CCC through the
web site maintained by the SEC at www.sec.gov. In addition,
investors and stockholders will be able to obtain free copies of
the Proxy Statement from CCC by contacting Georgeson Shareholder
Communications Inc., 17 State Street, New York, NY 10004, or by
telephone at (877) 901-6134. CCC and its directors and executive
officers may be deemed to be participants in the solicitation of
proxies in respect of the transactions contemplated by the Merger
Agreement. Information regarding CCC's directors and executive
officers is contained in CCC's Annual Report on Form 10-K for the
year ended December 31, 2004 and its Proxy Statement, filed on
Schedule 14A, dated April 22, 2005, which are filed with the SEC.
These documents are available free of charge at the SEC's web site
www.sec.gov. About CCC CCC Information Services Group Inc.
(NASDAQ:CCCG), headquartered in Chicago, is a leading supplier of
advanced software, communications systems, Internet and
wireless-enabled technology solutions to the automotive claims and
collision repair industries. Its technology-based products and
services optimize efficiency throughout the entire claims
management supply chain and facilitate communication among
approximately 21,000 collision repair facilities, 350 insurance
companies, and a range of industry participants. For more
information about CCC Information Services, visit CCC's Web site at
www.cccis.com. About Investcorp Investcorp is a global investment
group with offices in New York, London and Bahrain. The firm has
four lines of business: corporate investment, real estate
investment, asset management and technology investment. It was
established in 1982 and has since completed transactions with an
aggregate value of approximately $25 billion. Further information
on Investcorp is available at www.investcorp.com. This release
contains statements that constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 and are subject
to the safe harbor provisions of those sections and the Private
Securities Litigation Reform Act of 1995. Investors are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, including
those described in the Company's filings with the SEC, and that
actual results or developments may differ materially from those in
the forward-looking statements. Specific factors that might cause
actual results to differ from expectations include, but are not
limited to, competition in the automotive claims and collision
repair industries, the ability to develop new products and
services, the prolonged sales and implementation cycles of some of
the Company's new products, the ability to protect trade secrets
and proprietary information, the ability to generate the cash flow
necessary to meet the Company's obligations, the outcome of certain
legal proceedings including court approval of class action
litigation and negotiation of settlement documentation, and other
factors. The Company cannot predict whether other existing cases
relating to total loss valuations can be resolved on comparable
terms or whether additional suits may be filed in the future.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis,
judgment, belief or expectation only as of the date hereof. The
Company has based these forward-looking statements on information
currently available and disclaims any intention or obligation to
update or revise any forward-looking statement.
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