CCC Intelligent Solutions Inc. (CCC) has just announced its acquisition of EvolutionIQ, Inc. (EvolutionIQ), a leading platform for AI-powered guidance for disability and injury claims management. The transaction, expected to close in Q1 2025, is valued at $730 million, with approximately 40% of the consideration in CCCS common stock and 60% in cash. This acquisition is set to expand CCC’s market reach into strategic adjacencies and strengthen its industry-leading AI-powered SaaS platform.
CCC is a dominant force in the P&C insurance economy, with over 100 insurers and thousands of collision repairers leveraging its AI solutions. On the other hand, EvolutionIQ has been delivering a measurable impact on claims performance to many of the largest insurers in the US since its founding in 2019. Its AI-powered claims guidance platform uses AI to guide the next best actions for insurance professionals, providing them with gen AI-powered intelligent summarization capabilities to decipher medical documentation.
The acquisition is expected to bring transformative AI capabilities to revolutionize how insurance claims are resolved, specifically in disability and workers’ compensation. CCC anticipates using select EvolutionIQ capabilities across its customer base to advance its leadership position in the P&C insurance economy and related markets, leveraging an event-based architecture to enable new insights and AI-powered workflows for the more than 35,000 companies in the CCC network.
The transaction also signals CCC’s commitment to driving shareholder returns, with the company announcing a share repurchase program of up to $300 million, funded out of available liquidity and free cash flow. J.P. Morgan and Citi are serving as financial advisers to CCC, and Kirkland & Ellis LLP is serving as CCC’s legal advisor, while Lowenstein Sandler LLP is serving as EvolutionIQ’s legal advisor.
The acquisition of EvolutionIQ marks a significant move for CCC as it aims to revolutionize the insurance claims process, particularly in the disability and workers’ compensation lines. This strategic acquisition positions CCC to leverage real-world AI to solve complexity across the broader insurance ecosystem and unlock new levels of customer, consumer, and employee value. The market has reacted to these announcements by moving the company's shares -1.9% to a price of $11.82. For more information, read the company's full 8-K submission here.
