Sept 5 Private equity firm KKR & Co LP
has agreed to buy car and property claims software company
Mitchell International from Aurora Capital Group, the companies
said on Thursday.
Reuters reported last month that KKR was among the firms
vying for Mitchell in a sale that Aurora was hoping would fetch
up to $1.5 billion.
The firms did not disclose financial details. But two people
familiar with the matter, who are not authorized to discuss the
details publicly, said KKR would pay less than the $1.5 billion
Aurora was hoping for.
The transaction is expected to close in the fourth quarter.
"We believe that Mitchell represents an attractive
investment in a market leader in an important market segment,"
Herald Chen, KKR's co-head of technology investing group, said
in a statement.
Founded in 1946, San Diego, California-based Mitchell
provides information and software services to insurance
companies and collision repair facilities, which rely on the
company's information to estimate labor times and the cost of
Joined by investors that included General Electric Pension
Trust, Aurora acquired Mitchell in 2007 from private equity peer
Hellman & Friedman LLC for an undisclosed amount.
The North American market for software and services designed
to automate the auto insurance claims process is dominated by a
few players - Mitchell, CCC Information Services Inc and Solera
Holdings Inc, according to Standard & Poor's Ratings Services.
In January, Leonard Green & Partners LP, another buyout
firm, acquired CCC from Investcorp, one of the Middle East's
largest private equity houses, for more than $550 million.
KKR was advised by BofA Merrill Lynch and Three Ocean
Partners on the transaction. Goldman Sachs & Co served as lead
financial advisor to Mitchell. William Blair & Co and
Guggenheim Securities also advised the company.